Which of the Following Are Mechanisms That Have Evolved to Mitigate

question 38

Multiple Choice

Which of the following are mechanisms that have evolved to mitigate potential agency problems? I) Using the firm's stock options for compensation
II. Hiring bickering family members as corporate spies
III. Boards of directors forcing out underperforming management
IV. Security analysts monitoring the firm closely
V. Takeover threats

• A)II and V
• B)I, III, and IV
• C)I, III, IV, and V
• D)III, IV, and V

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Star Performer

One of a small number of employees who contribute a disproportionate amount of output.

Statistically Speaking

A phrase indicating that the following statement will be based on or supported by statistical data.

Personal Website

A website owned and curated by an individual to showcase their personal work, blog, portfolio, or interests.

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An extremely positive view of the self, combined with little empathy for others.