Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A) An active takeover market is part of the system through which the threat of dismissal is maintained.
• B) When internal governance systems such as ownership, compensation, board oversight, and shareholder activism fail, the one remaining way to remove poorly performing managers is by mounting a hostile takeover.
• C) Likely because hostile takeovers and internal governance systems are substitute mechanisms, researchers have found that boards are less likely to fire managers for poor performance during active takeover markets than they are during lulls in takeover activity.
• D) The effectiveness of the corporate governance structure of a firm depends on how well protected its managers are from removal in a hostile takeover.

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Definitions:

Understaffed Teams

Teams that operate with fewer members than are necessary to effectively manage the workload or achieve the team's goals.

Task Engagement

The degree of attention, interest, and effort that a person brings to bear on a particular task or activity.

High-learning Orientation

An approach focusing on continuous improvement and knowledge acquisition to enhance performance and adaptability.

Team Identification

The extent to which members identify with and feel a sense of belonging to their team, influencing motivation and cohesion.