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).
Answer: D
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Which scenario best depicts a mechanistic organization?
a. a small hair salon b. a local mechanic's shop c. a multinational corporation d. a family-run restaurant e. an advertising agency using a team structure
An easy way for a leader to be ethical is to ________
A) avoid listening to grievances and complaints B) avoid thinking about the financial consequences of decisions C) follow the Golden Rule D) follow the WIIFM principle