Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)The relationship between managerial ownership and firm value is unlikely to be the same for every firm,or even for different executives of the same firm.
• B)Even with the risk benefits of separating ownership and control,there are still examples of corporations in which the top managers have substantial ownership interests.
• C)Academic studies do not support the notion that greater managerial ownership is associated with fewer value-reducing actions by managers.
• D)While increasing managerial ownership may reduce perquisite consumption,it also makes managers harder to fire-thus reducing the incentive effect of the threat of dismissal.

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Definitions:

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.

Stereotype

A fixed, oversimplified image or idea of a particular type of person or thing.

Cognitive Boxes

Mental frameworks and categories that individuals use to organize and interpret information, influencing perceptions and decision-making.

Prejudices

Preconceived opinions that are not based on reason or actual experience, often leading to unfair treatment or discrimination.