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.

Understand the concept of organizational culture and its components.

Identify factors that influence employee performance and how they are evaluated.

Recognize the importance and methods of employee selection and performance evaluation.

Understand the role of leadership styles and theories in organizational behavior.

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Definitions:

Title

A legal term that represents ownership rights to property.

Specific Performance

A legal remedy in contracts law requiring a party to perform their part of the contract, as opposed to paying damages for failing to do so.

Delegation

The transfer of a contractual duty.