In: Finance
Which of the following statements is incorrect? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a In a corporation, shareholders' ownership and managers' control are separated. b Maximizing the shareholder wealth is the main objective of a manager, but she/he sometimes strays from this goal due to agency problems. c The "bid" price is the price at which dealers buy securities and is lower than the "ask" price. d Shareholders of a corporation have limited liability.
Ownership and control separation is one of the primary feature of a Corporation but it is all about ownership of the shareholder and control of the shareholder and it is not about the managers control on the organisation so corporation is all about shareholders ownership and shareholders control separation.
All the other options are true
Correct answer will be option (A) in a corporation, shareholders ownership and managers control are separated.