Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)The incentives come from owning stock in the company and from compensation that is sensitive to performance.
• B)The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm.
• C)Punishment comes when a board fires a manager for poor performance or fraud,or when,upon failure of the board to act,shareholders or raiders launch control contests to replace the board and management.
• D)The corporate governance system attempts to align interests by providing incentives for taking the right action and punishments for taking the wrong action.

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Definitions:

GLOBE Project

A research initiative that examines the impact of culture on leadership effectiveness and organizational practices across the world.

Culture Clusters

Culture clusters are groupings of cultures that share similar characteristics, values, and patterns of behavior, often studied in cross-cultural research and international business strategy.

Leadership Dimensions

Aspects or attributes that define and describe the nature and effectiveness of leadership within various contexts.

Autonomous Dimensions

Refers to the various independent factors or aspects in systems or processes that operate or change without external control.