Goal congruence can be defined as
A)an incentive plan arranged so the managers' goals are aligned with the shareholders' goals.
B)managers operating the business in the best interest of the shareholders.
C)tying management rewards to shareholder results.
D)all of these are correct.

Question

Quizplus · Accepted Answer

Goal congruence refers to the alignment of goals and incentives between managers and shareholders, so that the actions taken by managers are in the best interest of the shareholders. Choice A describes one method of achieving goal congruence. Choice B describes the end goal of goal congruence. Choice C describes another method of achieving goal congruence. Therefore, all three choices are correct and the best answer is D.

Goal Congruence Can Be Defined as