Which of the following statements is FALSE? Select one:

a. In principle, the board of directors hires the executive team, sets its compensation, approves major investments and acquisitions, and dismisses executives if necessary.

b. When the ownership of a corporation is widely held, no one shareholder has an incentive to bear the cost of monitoring, because she bears the full cost of monitoring but the benefit is divided among all shareholders.

c. The shareholders as a group elect a board of directors to monitor managers. The directors themselves, however, have the same conflict of interestmonitoring is costly and in many cases directors do not get significantly greater benefits than other shareholders from monitoring the managers closely.

d. The board of directors has a clear fiduciary duty to protect the interests of both the owners of the firm (the shareholders) and the interests of managers in the firm.