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Managers Whose Compensation Is Not Based on the Profits of the Business

Question 122

Multiple Choice

Managers whose compensation is not based on the profits of the business that employs them may attempt to maximize profits to:


A) retain their jobs.
B) maintain a high stock price and prevent a hostile takeover of their business.
C) satisfy well-informed major investors who understand profit maximization.
D) all of the above.

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