Methods of Encouraging Managers to Act in Shareholders' Best Interest

question 45

Multiple Choice

Methods of encouraging managers to act in shareholders' best interest include:
I. Threat of takeover.
II. Proxy fights for control of the board of directors.
III. Tying managers' compensation to stock price performance.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

Understand the historical changes and reforms in federal employment and political participation of employees.

Learn the functions and operations of bureaucratic agencies within the federal government.

Differentiate between political appointees and civil servants, including how they obtain their jobs.

Analyze the reasons behind the unresponsiveness of the bureaucracy to presidential directives.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive, due to the market price being higher.

Wooden Furniture

Furniture made from wood materials, valued for its aesthetic appearance, durability, and the warm atmosphere it brings to spaces.

Domestic Price

The price of goods or services within a country’s borders, as opposed to international or foreign prices.

Export

The selling of goods or services produced in one country to buyers in another country.