Which of the Following Statements Is False

question 46

Multiple Choice

Which of the following statements is false?

• A) In many other countries, the central conflict is between what are called "controlling shareholders" and "minority shareholders."
• B) Controlling shareholders can make decisions that benefit them disproportionately relative to the minority shareholders, such as employing family members rather than the most talented managers or establishing contracts favorable to other family controlled firms.
• C) As recent events and corporate scandals have shown, investor protection in the United States is generally seen as substandard when compared to the developed economies in the world.
• D) Much of the focus in the United States is on the agency conflict between shareholders, who own the majority of a firm but are a dispersed group, and managers, who own little of the firm and must be monitored.

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Definitions:

Communication Structure

The organized pattern or framework that dictates how information is exchanged and processed within a group or system.

Voting Rules

The set of regulations that govern the process of voting in elections or decision-making entities.

Obedience

Compliance with commands given by an authority figure.

Asch's Studies

A series of psychological experiments conducted by Solomon Asch, demonstrating the power of conformity in groups.