Which of the following statements is incorrect?
A) Managers may be tempted to make decisions that are in their own best interests rather than shareholder interests.
B) The compensation of bank loan officers may be tied to loan volume, which encourages a loan department to extend loans with a very high concern for risk.
C) To prevent agency problems, some banks provide stock as compensation to managers.
D) The underlying goal behind the managerial policies of a bank is to maximize the wealth of the bank's shareholders.
Correct Answer:
Verified
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