Firms with ____ ownership have a separation of ownership and control.

Question

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Diffused ownership means that ownership of a firm is spread out among a large number of shareholders, making it difficult for any one shareholder to have significant control over the firm. This results in a separation of ownership and control, with management and decision-making controlled by a board of directors or executive team rather than directly by the shareholders. State ownership (A) refers to firms that are owned and controlled by the government or state, while concentrated ownership (B) implies that a small group or individual has a significant stake and control in the firm. Focused ownership (D) is not a recognized term in corporate governance.

Firms with ____ Ownership Have a Separation of Ownership and Control