A common way used to align the interests of managers with the interests of equity holders is

Name: A common way used to align the interests of managers with the interests of equity holders is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Stock options give managers the opportunity to purchase company stock at a predetermined price, which incentivizes them to work towards increasing the company's value and thus the value of the stock. This aligns their interests with those of equity holders who also benefit from an increase in the company's value.

A Common Way Used to Align the Interests of Managers