One Way Often Used to Insure That Management Decisions Are

question 13

Multiple Choice

One way often used to insure that management decisions are in the best interest of the stockholdersis to

• A) tie management compensation to the performance of the company's common stock price.
• B) remove management's perquisites.
• C) tie management compensation to the level of earnings per share.
• D) threaten to fire managers who are seen as not performing adequately.

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Definitions:

American Arbitration Association

A nonprofit organization that provides arbitration services to help resolve disputes outside of courtrooms.

Arbitrator

A neutral third party chosen to resolve disputes outside of court, typically through the arbitration process, where their decision is usually binding.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct their activities with integrity and responsibility.

Arbitration

A method of dispute resolution involving an impartial third party who hears both sides and makes a binding decision.