Which of the Following Actions Are Likely to Reduce the Agency

question 25

Multiple Choice

Which of the following actions are likely to reduce the agency problem between stockholders and managers?

• A) Congress passes a law that severely restricts hostile takeovers.
• B) A manager receives a lower salary but receives additional shares of the company's stock.
• C) The board of directors has become more vigilant in its oversight of the company's management.
• D) Statements b and c are correct.
• E) All of the statements above are correct.

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