Which of the following illustrates a situation that would encourage a manager to work in the interests of a company's shareholders?

Question

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If a manager's total compensation is tied to maximizing the share price, it would encourage the manager to work in the interests of the company's shareholders. This aligns their personal goals with the goals of the shareholders, who want to see the value of their investments increase. Option A's focus on quarterly accounting profits and Option B's focus on keeping costs low may result in short-term benefits, but may not necessarily benefit the shareholders in the long term. Option D's focus on personal perks does not align the manager's interests with that of the shareholders.

Which of the Following Illustrates a Situation That Would Encourage