Which of the following are mechanisms that have evolved to mitigate potential agency problems?
I.compensation in the form of the firm's stock options
II.hiring bickering family members as corporate spies
III.underperforming management teams being forced out by boards of directors
IV.security analysts monitoring the firm closely
V.takeover threats
A) II and V
B) I,III,and IV
C) I,III,IV,and V
D) III,IV,and V
E) I,III,and V
Correct Answer:
Verified
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