One alternative to the stockholder focused corporate governance system that the US has adopted is a more centralized system, where corporate groups (Japan, Germany) or expert entities (China?) decide how and when to discipline managers. Which of the following statements best characterizes the latter?

a.

a. They are more efficient (than stockholder based systems) in dealing will all types of management problems

b.

b. They are more efficient at dealing with company-specific problems (individual companies that are poorly run) but less efficient at dealing with systematic problems (where lots of companies make the same mistake)

c.

c. They are less efficient at dealing with company-specific problems but more efficient at dealing with systematic problems

d.

d. They are less efficient at dealing with all types of management problems