Which of the Following Statements Is False

question 10

Multiple Choice

Which of the following statements is false?

• A) Recently, shareholders have started organizing "no" votes. That is, when they are dissatisfied with a board, they simply refuse to vote to approve the slate of nominees for the board.
• B) One early study of proxy contests found that the announcement of a contest increased firm stock price by 8% on average, even if the challenge was eventually unsuccessful and the incumbents won reelection.
• C) Shareholders' only real role in governance is in electing the directors of the company.
• D) Perhaps the most extreme form of direct action that disgruntled shareholders can take is to hold a proxy contest and introduce a rival slate of directors for election to the board.

---

Definitions:

Self-Control Problem

The difficulty individuals face in resisting short-term temptations to meet long-term goals.

Behavioral Economists

Experts who analyze the influence of psychological, cognitive, emotional, cultural, and social factors on the economic choices of persons and entities.

Self-Interest

That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.

Moral Considerations

Ethical elements that influence decision-making, emphasizing the distinction between right and wrong actions in personal and professional contexts.