Which of the Following Is a Reason Why Managers Act

question 30

Multiple Choice

Which of the following is a reason why managers act to maximize shareholder wealth in Anglo-American markets?

• A) the use of stock options to align the goals of shareholders and managers
• B) the market for corporate control that allows for outside takeover of the firm
• C) performance-based compensation for executive management
• D) all of the above

---

Definitions:

Buffer

A substance in a solution that tends to lessen the change in hydrogen ion concentration (pH) that otherwise would be produced by adding an acid or base.

Hydrogen Bonds

Weak bonds between partially positive hydrogen atoms and partially negative atoms (such as oxygen or nitrogen) in different molecules or within the same molecule.

Atomic Mass

The mass of an atom, typically expressed in atomic mass units (amu), representing the total mass of protons, neutrons, and electrons in the atom.

Ionic Bond

A chemical bond that occurs when two ions of opposite charges are linked together by transferring one or more electrons from one atom to the other.