Executives that repeatedly put their own interests before that of the firm may find that they have difficulty in finding another job after their current one. This is an example of
A) the managerial labor market disciplining managers.
B) the market for corporate control.
C) the board of directors affecting the prospects of a manager.
D) none of the above.

Question

Quizplus · Accepted Answer

The option A, the managerial labor market disciplining managers, refers to the idea that executives who behave unethically or put their own interests before that of the firm, might face difficulties in finding another job. This is because other firms may view them as untrustworthy and not worth taking the chance with.

Executives That Repeatedly Put Their Own Interests Before That of the Firm