Managerial entrenchment means that managers ________ and run the firm for their own best interests.
A)may face little threat of being fired
B)are overseen by equity holders
C)are overseen by debt holders
D)are well compensated
E)wish to leave the firm

Question

Quizplus · Accepted Answer

Managerial entrenchment means that managers are entrenched or established in their positions and may face little threat of being fired. This can lead to them running the firm for their own best interests rather than those of the equity holders or other stakeholders. The other choices may be factors that contribute to managerial entrenchment, but A is the best choice that directly relates to the definition.

Managerial Entrenchment Means That Managers ________ and Run the Firm