Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Shareholders as a group have little or no ability to force managers to pursue maximization of the firm's value.
B) The effectiveness of a board of directors in monitoring managers is enhanced by appointing members from the firm who are well-informed about the management problems facing the firm.
C) Reducing the amount of debt financing can reduce divergence between the shareholders' interests and the manager's interests.
D) Equity ownership by managers is thought to be one of the most effective corporate control mechanisms.
E) All of the above are true.