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:

Guidelines

A set of principles or advice designed to regulate behavior or assist with decision-making in specific situations.

Content

The substance or material dealt with in a speech, literary work, document, or other mediums, often distinguished from its form.

Duty Of Competence

The obligation of professionals to have the required knowledge and skill to perform their tasks effectively and according to their profession's standards.

Adequate Attorney Supervision

The process of ensuring that attorneys provide proper guidance and oversight to their legal staff, maintaining professional standards.