Managers are encouraged to act in shareholders' interests by:
A)shareholder election of a board of directors who select management.
B)the threat of a takeover by another firm.
C)compensation contracts that tie compensation to corporate success.
D)Both A and B.
E)All of the above.

Question

Quizplus · Accepted Answer

Managers are encouraged to act in shareholders' interests through mechanisms like shareholder election of the board (A), the threat of takeovers (B), and compensation contracts linked to performance (C).

Managers Are Encouraged to Act in Shareholders' Interests By