Which of the Following Is a Reason Why Managers Act

question 30

Multiple Choice

Which of the following is a reason why managers act to maximize shareholder wealth in Anglo-American markets?

• A) the use of stock options to align the goals of shareholders and managers
• B) the market for corporate control that allows for outside takeover of the firm
• C) performance-based compensation for executive management
• D) all of the above

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Definitions:

Debtors

Individuals or entities that owe money to others.

Assignment

Assignment refers to the transfer of rights, property, or responsibilities from one party to another.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee able to transfer it to another holder.

Consideration

In contract law, something of value given by one party in exchange for something of value from another party, forming the basis for a contract.