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:

Rosebud

A type of torch tip used in welding and cutting applications, named for its rose petal-like flame pattern, commonly used for heating.

Forged Journal Cross

A forged journal cross is a component in the driveline of a vehicle, made through forging to achieve strength and durability, used to connect different shafts within the drive system.

Universal Joint

An assembly consisting of a trunnion cross and bearings that connects a pair of yokes for purposes of transmitting drive torque on an angled plane.

Trunnions

Trunnions are cylindrical protrusions used as a pivot or mounting point, commonly found in cannons, tanks, and heavy machinery for rotation or support.