Which of the Following Help Convince Managers to Work in the Best

question 24

Multiple Choice

Which of the following help convince managers to work in the best interest of the shareholders?
I.compensation based on the value of the equity
II.share option plans
III.threat of a proxy fight
IV.threat of conversion to a partnership

• A)I and II only.
• B)II and III only.
• C)I, II and III only.
• D)I and III only.
• E)I, II, III, and IV.

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Definitions:

Production System

The combination of inputs, processes, and outputs that creates goods or services in an organized manner.

Labor Inputs

The quantity of labor used in the production process, often measured in hours worked or number of employees.

Decreasing Returns

A situation in which adding more of one factor of production, while holding others constant, will yield progressively smaller increases in output.

Factor of Production

An input used in the production of goods or services, such as land, labor, capital, and entrepreneurship.