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The Free-Rider Problem, When Referring to Monitoring of the Firms

Question 6

Multiple Choice

The free-rider problem, when referring to monitoring of the firms' performance, often results in


A) ineffective monitoring by the shareholders.
B) monitoring being delegated by shareholders to boards of directors.
C) no monitoring by a large number of small individual investors.
D) ineffective monitoring by the shareholders, monitoring being delegated by shareholders to boards of directors, and no monitoring by a large number of small individual investors.

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