Which THREE of the Following Can Be Used to Reduce

question 7

Multiple Choice

Which THREE of the following can be used to reduce the principal-agent problem in business organizations? (Choose three.)

• A) Requiring managers to uphold detailed disclosure and reporting practices.
• B) Introducing bonuses related to the profit performance of the business.
• C) Implementing a 'top-down' decision-making process.
• D) Implementing a share distribution scheme.
• E) Requiring managers to take into account the interests of external stakeholders.

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