Beyond Incentives and Monitoring, What Could Be a Third Way

question 14

Multiple Choice

Beyond incentives and monitoring, what could be a third way to align managers' behavior with shareholders interests?

• A)Develop strong industry standards for executives' work ethics.
• B)Increase penalties for managers who intentionally mislead shareholders.
• C)Consult all shareholders on the operational decisions of executives.
• D)Ask managers to behave more like shareholders.
• E)None of the above.There is no third way.

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Definitions:

Small Town

A community with a small population, typically offering a close-knit environment and fewer amenities than a city.

Frustrated

Feeling of being upset or annoyed, typically as a result of inability to change or achieve something.

Guilty

A state of having committed a specific offense or violation, often associated with legal culpability or moral responsibility.

Altruism

The selfless concern for the well-being of others without expecting any reward.