Which One of the Following Is Least Apt to Help

question 41

Multiple Choice

Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes.

• A) Compensation based on the value of the stock
• B) Stock option plans
• C) Threat of a company takeover
• D) Threat of a proxy fight
• E) Increasing managers' base salaries 

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Definitions:

Dependent

In statistics, it refers to a variable which is assumed to be influenced by one or more independent variables.

Random Phenomenon

A process or event that occurs in a manner that the outcome is unpredictable and, in some cases, follows a probability distribution.

Maryland Powerball

A lottery game available in Maryland, part of the multi-state Powerball lottery in the United States.

Independent Trials

Experiments or tests in which the outcomes are not affected by previous results, ensuring each trial is conducted under similar but independent conditions.