Managers are encouraged to act in shareholders' interests by:
A) shareholder election of a board of directors who select management.
B) the threat of a takeover by another firm.
C) compensation contracts that tie compensation to corporate success.
D) Both shareholder election of a board of directors who select management; and the threat of a takeover by another firm.
E) All of

Question

Quizplus · Accepted Answer

Managers are encouraged to act in shareholders' interests through mechanisms like shareholder election of the board, the threat of takeovers, and compensation contracts tied to corporate success.

Managers Are Encouraged to Act in Shareholders' Interests By