Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)Recently,shareholders have started organizing "no" votes.That is,when they are dissatisfied with a board,they simply refuse to vote to approve the slate of nominees for the board.
• B)One early study of proxy contests found that the announcement of a contest increased firm stock price by 8% on average,even if the challenge was eventually unsuccessful and the incumbents won reelection.
• C)Shareholders' only real role in governance is in electing the directors of the company.
• D)Perhaps the most extreme form of direct action that disgruntled shareholders can take is to hold a proxy contest and introduce a rival slate of directors for election to the board.

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Definitions:

Likelihood

In statistics, the probability of a set of parameters given a specific outcome; used in maximum likelihood estimation.

Subjective Probability

An individual's personal and subjective assessment of the likelihood of an event occurring, based on their own knowledge and judgment rather than on statistical analysis.

Personal Judgment

Personal Judgment involves making decisions or forming opinions based on individual assessment and intuition, rather than solely on data.

Theoretical Arguments

Reasoning based on hypothetical constructs and principles, often used to explain or predict phenomena beyond empirical observations.