Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A) It is important to keep in mind that good governance is value enhancing and so, in principle, is something investors in the firm should strive for.
• B) Corporate governance is a system of checks and balances that trades off costs and benefits.
• C) Because good governance is based upon a basic set of principles, like those detailed in the Cadbury Commission's findings, one should expect all firms to display similar governance structures.
• D) The costs and benefits of a corporate governance system also depend on cultural norms.

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Definitions:

Factor Inputs

The resources used in the production of goods and services, such as labor, land, and capital.

Long Run

A period in economics where all factors of production and costs are variable, allowing all inputs to be adjusted.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to expand its output.

Isoquants

A curve representing all combinations of inputs that give the same level of output.