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

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Definitions:

Goal

A specific, measurable, and attainable outcome or objective that a person or organization strives to achieve.

Superiority Complex

A psychological defense mechanism in which an individual exaggerates their own abilities and worth in order to overcome feelings of inferiority.

Idealized Self

A version of oneself that represents the standards of perfection, success, and attractiveness set by oneself or by societal expectations, often unattainable and leading to dissatisfaction.

Bowlby and Ainsworth

Refers to John Bowlby and Mary Ainsworth, psychologists known for their work in developing attachment theory.