Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) The incentives come from owning stock in the company and from compensation that is sensitive to performance.
• B) The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm.
• C) Punishment comes when a board fires a manager for poor performance or fraud, or when, upon failure of the board to act, shareholders or raiders launch control contests to replace the board and management.
• D) The corporate governance system attempts to align interests by providing incentives for taking the right action and punishments for taking the wrong action.

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Definitions:

Coping

The process of managing and dealing with stressors or challenging situations in an effective way.

Contextual Risk Factor

External conditions or environments that increase the likelihood of negative outcomes or vulnerabilities for an individual or group.

Parental Arguing

Refers to conflicts or disputes between parents, often witnessed by or impacting their children.

Attachment Status

A classification reflecting the nature of an individual's emotional bond with significant caregivers, influencing their social and emotional development and relationships.