Which of the following statements is FALSE?
OA. In many other countries, the central conflict is between what are called "controlling shareholders" and "minority
shareholders."
OB. Controlling shareholders can make decisions that benefit them disproportionately relative to the minority
shareholders, such as employing family
members rather than the most talented managers or establishing contracts
favorable to other family controlled firms.
OC. As recent events and corporate scandals have shown, investor protection in the United States is generally seen as
substandard when compared to the
developed economies in the world.
OD. Much of the focus in the United States is on the agency conflict between shareholders, who own the majority of a
firm but are a dispersed group
, and managers, who own little of the firm and must be monitored.
24
OA. In many other countries, the central conflict is between what are called "controlling shareholders" and "minority
shareholders."
OB. Controlling shareholders can make decisions that benefit them disproportionately relative to the minority
shareholders, such as employing family
members rather than the most talented managers or establishing contracts
favorable to other family controlled firms.
OC. As recent events and corporate scandals have shown, investor protection in the United States is generally seen as
substandard when compared to the
developed economies in the world.
OD. Much of the focus in the United States is on the agency conflict between shareholders, who own the majority of a
firm but are a dispersed group
, and managers, who own little of the firm and must be monitored.
24
