To Reduce Agency Problems,executive Compensation Should Be Designed To

question 2

Multiple Choice

To reduce Agency Problems,executive compensation should be designed to:

• A)create incentives so that managers act like owners of the firm.
• B)avoid making the executives own shares in the company.
• C)be an increasing function of the firm's expenses.
• D)be an increasing function of the sales revenue received by the firm.
• E)all of the above