Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) If managers have large ownership stakes, then shareholders are more likely to use compensation policies or a stronger board to create the desired incentives.
• B) If all else fails, the shareholders' last line of defense against expropriation by self-interested managers is direct action.
• C) A shareholder resolution could direct the board to take a specific action, such as discontinue investing in a particular line of business or country, or remove a poison pill.
• D) Any shareholder can submit a resolution that is put to a vote at the annual meeting.

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Definitions:

Social Interactions

The process by which individuals act and react in relation to others, including communication, relationships, and influences between people.

Building Blocks

Fundamental components or elements from which larger structures, concepts, or systems are constructed or derived.

Role-Playing

Involves conforming to existing performance expectations.

Role-Making

Is the creative process by which individuals generate role expectations and performances.