Firms with ____ ownership have numerous small shareholders but none with a dominant level of control.

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Diffused ownership refers to a situation where a company has numerous small shareholders, none of whom has a controlling stake. This differs from concentrated ownership (choice A), where a limited number of large investors may hold a significant amount of shares and have considerable control over the company. Family ownership (choice B) refers to a situation where a family owns a controlling stake in a company. State ownership (choice D) refers to situations where the government owns or controls a company.

Firms with ____ Ownership Have Numerous Small Shareholders but None