Explanation

Shareholder control over management depends on both ownership concentration and voting power concentration:

• Dispersed ownership + Dispersed voting power (A):

  • Many small shareholders with no individual significant voting power
  • Creates severe free-rider problem in monitoring
  • Management has maximum autonomy
  • Least shareholder control

• Dispersed ownership + Concentrated voting power (B):

  • While ownership is dispersed, voting power is concentrated (e.g., through dual-class shares)
  • Controlling shareholders can still exercise oversight

• Concentrated ownership + Concentrated voting power (C):

  • Large shareholders with significant voting power
  • Strongest monitoring incentives
  • Most shareholder control

Correct answer is A because the combination of dispersed ownership AND dispersed voting power creates the weakest shareholder oversight mechanism, giving management the most independence from shareholder control.