Which of the following statements is correct?
A) When professional managers have large equity positions of their own in a company with diffused ownership, they have both the power and a motive to engage in self-dealings.
B) When professional managers have small equity positions of their own in a company with concentrated ownership, they have both the power and a motive to engage in self-dealings.
C) When professional managers have small equity positions of their own in a company with diffused ownership, they have both the power and a motive to engage in self-dealings.
D) When professional managers have large equity positions of their own in a company with concentrated ownership, they have both the power and a motive to engage in self-dealings.
Correct Answer:
Verified
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