Multiple Choice
Which of the following statements about governance mechanisms is misleading?
A) Governance mechanisms can be classified as voice-based and exit-based mechanisms.
B) As an external governance mechanism, private equity utilizes the stock market to discipline managers.
C) In general, boards are likely to use "carrots" before considering "sticks."
D) Product market competition complements the market for corporate control and the market for private equity.
Correct Answer:
Verified
Correct Answer:
Verified
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