Which of the Following Mechanisms Is Not Used by Shareholders

question 23

Multiple Choice

Which of the following mechanisms is not used by shareholders to get managers to act in shareholder's best interests?

• A)Threat of firing
• B)Managerial compensation.
• C)Golden parachute.
• D)Threat of takeover.
• E)Answers b and c above.

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Definitions:

Sourcing

The process of identifying, evaluating, and selecting suppliers for goods or services required by a business.

Inventory Aggregation

A strategy that combines different items or products into larger groups to simplify inventory management and reduce costs.

Quantity Discounts

Price reductions based on the volume of purchase, incentivizing larger orders.

Cycle Inventory

The portion of inventory that varies directly with lot size, representing the inventory needed to satisfy demand for the product in the period between reorders.