Which of the Following Statements Is FALSE

question 27

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:

Differential Analysis

The process of analyzing and comparing alternative business decisions based on the differences in total costs and total revenues.

Commercial Oven

A heavy-duty cooking appliance designed for use in a commercial setting like restaurants or bakeries, built to withstand high-volume, continuous use.

Maintenance Costs

Expenses incurred in keeping an asset in working condition or restoring it to working condition.

Target Selling Price

The price at which a company aims to sell its product to achieve its financial goals.