By Tying the Salaries of Top Corporate Managers to the Price

question 144

Multiple Choice

By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid

• A)corporate governance.
• B)conflict between the CFO and the CEO.
• C)the principal-agent problem.
• D)paying high salaries to their managers.

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Definitions:

Price Maker

A firm or entity that has significant control over the price of the goods or services it provides, due to lack of competition.

Big Data

Refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Price Discriminate

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different customers.

Personalized Pricing

A pricing strategy where prices are set for individual customers based on their perceived willingness to pay, often using data analytics.