Which of the following results is due to the greater concentration of ownership in non-U.S. firms?
A) The greater concentration of ownership in non-U.S. firms makes it easy to change managers.
B) The greater concentration of ownership in non-U.S. firms permits greater monitoring and control by individuals or groups.
C) The greater concentration of ownership in non-U.S. firms results in difficult access to credit in times of financial difficulty.
D) The greater concentration of ownership in non-U.S. firms results in greater focus of managers on short-term goals of the firm.
E) The greater concentration of ownership in non-U.S. firms results in reduced involvement of stockholders in the firms' daily operations.

Question

Quizplus · Accepted Answer

The greater concentration of ownership in non-U.S. firms permits greater monitoring and control by individuals or groups. This is due to the fact that fewer owners means that each owner has a larger stake and influence in the company, allowing them to more closely monitor and control management decisions.

Which of the Following Results Is Due to the Greater