2 which of the following statements is false a in

2) Which of the following statements is FALSE?
A) In many other countries, the central conflict is between what are called "controlling shareholders" and
"minority shareholders."
B) 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.
C) 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.
D) 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.
Answer: C
Explanation: C) Recent events notwithstanding, investor protection in the United States is generally seen
as being among the best in the world.
Diff: 1
Section: 29.6 Corporate Governance Around the World
Skill: Conceptual
3) Which of the following statements is FALSE?
Diff: 2
Section: 29.6 Corporate Governance Around the World

Skill: Conceptual
4) Which of the following statements is FALSE?