In Order to Reduce Agency Problems,managers May Be Provided Compensation

question 5

Multiple Choice

In order to reduce agency problems,managers may be provided compensation that includes

• A) a fixed salary so managers' pay is not at risk, allowing managers to focus on the company's business.
• B) a bonus based on the level of profit achieved during the year.
• C) an option to buy the company's stock.
• D) incentive pay for achieving higher sales than last year.

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Definitions:

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A type of wine made from dark-colored grape varieties, containing antioxidants and typically consumed as a beverage complementing food.