Multiple Choice
Which of the following statements is false?
A) If managers have large ownership stakes, then shareholders are more likely to use compensation policies or a stronger board to create the desired incentives.
B) If all else fails, the shareholders' last line of defense against expropriation by self-interested managers is direct action.
C) A shareholder resolution could direct the board to take a specific action, such as discontinuing investment in a particular line of business or country, or removing a poison pill.
D) Any shareholder can submit a resolution that is put to a vote at the annual meeting.
Correct Answer:
Verified
Correct Answer:
Verified
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