Which of the Following Statements Is FALSE

question 46

Multiple Choice

Which of the following statements is FALSE?

• A)The United States is somewhat of an exception,in that it focuses solely on maximizing shareholder welfare.
• B)A controlling family has many opportunities to expropriate minority shareholders in a pyramid structure.
• C)One way for families to gain control over firms even when they do not own more than half the shares is to issue dual class shares-a scenario in which companies have more than one class of shares and one class has superior voting rights over the other class.
• D)Researchers have claimed that the degree of investor protection was largely determined by the legal origin of the country-specifically,whether its legal system was based on British common law (less protection)or French,German,and Scandinavian civil law (more protection).

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Definitions:

Aversive Punishment

Aversive Punishment involves applying an unpleasant stimulus with the goal of decreasing or eliminating an undesirable behavior.

Negative Reinforcement

The strengthening of a behavior because it removes or decreases an unpleasant experience or outcome.

Aversive Punishment

A form of punishment that involves introducing an unpleasant or painful stimulus in order to reduce the likelihood of a behavior reoccurring.

Positive Reinforcers

Stimuli that, when introduced following a behavior, increase the likelihood that the behavior will occur again in the future.