Kizspy | Question: 34
(Choose 1 answer)
In situations where company ownership is widely dispersed,
A. a substantial number of shareholders guarantees effective oversight of managerial conduct as there's
typically someone willing to bear the monitoring expenses.
B. there's a challenge of "free riders," discouraging shareholder involvement, as few have a significant
motivation to bear the monitoring costs.
C. the majority of shareholders will possess ample motivation to bear the monitoring costs.
D. the presence of a "free rider" issue promotes shareholder activism.
