Which of the Following Actions Would Be Likely to Reduce

question 55

Multiple Choice

Which of the following actions would be likely to reduce conflicts of interest between stockholders and managers?

• A) Congress passes a law that severely restricts hostile takeovers.
• B) A firm's compensation system is changed so that managers receive larger cash salaries but fewer long-term options to buy stock.
• C) The company changes the way executive stock options are handled, with all options vesting after 2 years rather than having 20% of the options awarded vest e2 years over a 10-year period.
• D) The company's outside auditing firm is given a lucrative year-by-year consulting contract with the company.
• E) The composition of the board of directors is changed from all inside directors to all outside directors, and the directors are compensated with stock rather than cash.

Calculate the return on investment for mutual funds considering distributions and changes in NAV.

Identify the regulatory and operational features unique to mutual funds, including load structures and 12b-1 fees.

Understand the concept and operational mechanics of pooled investment structures, including commingled funds.

Understand the scope and applicability of AASB 2 Share-based Payment.

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Definitions:

War of Spanish Succession

The War of Spanish Succession (1701-1714) was a major European conflict fought over who would inherit the Spanish throne, leading to significant shifts in power dynamics among European states.

Louis XIV

Known as the Sun King, he was a monarch of the House of Bourbon who reigned as King of France from 1643 until his death in 1715.

Crowns of France

Symbols of monarchy and authority in France, historically associated with the French kings.