Managers who place the interest of the shareholders ﬁrst, will tend to:
A) Be replaced on a routine basis.
B) Decline all offers to buy the ﬁrm.
C) Realize minimal value from the stock options they are granted.
D) Reward employees for unethical behavior if that behavior increases the ﬁrm's net income.
E) Be in greater demand and receive higher compensation.

Question

Quizplus · Accepted Answer

Managers who prioritize the interests of the shareholders are likely to increase the company's profits, which in turn will attract investors and increase the demand for their skills as managers. As a result, they are likely to receive higher compensation.

Managers Who Place the Interest of the Shareholders ﬁRst, Will