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When Are the Interests of Stockholders and Senior Managers Likely

Question 31

Multiple Choice

When are the interests of stockholders and senior managers likely to be most closely aligned?


A) When the board of directors is dominated by insiders
B) When managers receive most of their compensation in the form of a regular salary
C) When stockholders are weak
D) When managers receive most of their compensation in the form of stock options
E) When corporate raiders are unable to mount a takeover bid

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