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Which of These Is True of Blockholders

Question 4

Multiple Choice

Which of these is true of blockholders?


A) They participate more than small shareholders in the governance process because they internalize more of the benefits.
B) They add value to the corporation when they extract private benefits.
C) They are superior to institutional investors in their ability to reduce agency costs.
D) They should not be managers of the firm.

Correct Answer:

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