Which of the Following Statements Is FALSE

question 4

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:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when considering a specific topic or decision.

Congress

The national legislative body of a country, particularly in the United States, it is composed of the House of Representatives and the Senate.

Welfare

A system of support provided by the government or private organizations to ensure the basic living standards of individuals or communities.

Algorithm

A step-by-step procedure or set of rules to be followed in calculations or other problem-solving operations.