In Order to Minimize the Temptation for Managers to Act

question 61

Multiple Choice

In order to minimize the temptation for managers to act in their own self-interest,governance mechanisms exist for implementation consideration.Which of the following is not a primary means for monitoring managerial behavior?

• A) a board of directors that acts in the best interests of shareholders to create short-term value
• B) shareholder activism in which owners view themselves as shareowners
• C) a board of directors that acts in the best interests of shareholders to create long-term value
• D) managerial incentives to align management interests with those of the stockholders

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Definitions:

Environmental Considerations

Factors related to the natural environment that are taken into account in decision-making and business practices.

Procurement Outsourcing

The practice of hiring external organizations to manage procurement functions to save costs and improve efficiency.

Source-to-Contract

Encompasses the entire procurement process from identifying potential suppliers to negotiating and finalizing contracts with chosen suppliers.

Procure-to-Pay

An end-to-end process in the procurement function that starts with sourcing and ends with payment for the procured goods or services.