McqMate
| Q. |
When company ownership is diffuse, |
| A. | a "free rider" problem discourages shareholder activism. |
| B. | the large number of shareholders ensures strong monitoring of managerial behavior because with a large enough group, there's almost always someone who will to incur the costs of monitoring management. |
| C. | few shareholders have a strong enough incentive to incur the costs of monitoring management. |
| D. | both a) and c) are correct |
| Answer» D. both a) and c) are correct | |
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