Which of the Following Actions Would Be Likely to Encourage

question 37

Multiple Choice

Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interests of shareholders?

• A) The percentage of executive compensation that comes in the form of cash is increased and the percentage coming from long-term stock options is reduced.
• B) The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover.
• C) The percentage of the firm's stock that is held by institutional investors such as mutual funds,pension funds,and hedge funds rather than by small individual investors rises from 10% to 80%.
• D) The firm's founder,who is also president and chairman of the board,sells 90% of her shares.
• E) The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think best without obtaining board approval.

Recognize the role of international aid and institutions, like the World Bank, in supporting economic development in developing nations.

Understand the impact of foreign aid flow and its distribution among developing nations.

Understand the definition and characteristics of developing countries.

Identify and analyze the impact of direct foreign investment on economic growth in developing countries.

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Definitions:

Succession Management

The process of identifying and developing potential future leaders or senior managers to fill key positions within an organization.

Employee Value Proposition

A unique set of benefits and rewards offered by an employer to attract, retain, and engage employees.

Brand Positioning

The strategy of creating a unique impression in the customer's mind so that they perceive your brand distinctively in comparison to competitors.

Succession Planning

A strategy for identifying and developing new leaders who can replace old leaders when they leave, retire or pass away.