Which of the Following Mechanisms Is Not Used by Shareholders

question 95

Multiple Choice

Which of the following mechanisms is not used by shareholders to get managers to act in shareholders' best interests?

• A) Threat of firing.
• B) Managerial compensation.
• C) Performance shares.
• D) Threat of takeover.
• E) Answers b and c above.

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Definitions:

Risk Mitigation Strategies

Methods or plans implemented to reduce the likelihood or impact of potential threats to a business or project.

Flexibility

The ability of a supply chain to adjust its operations and adapt to changes, including demand variability, supply disruptions, and market conditions.

Supply Chain Managers

Are professionals responsible for overseeing and managing every stage of the production flow, from the acquisition of raw materials to the delivery of the final product.

Offshoring

The practice of relocating business operations from the home country to another country, often to take advantage of lower labor costs.