Methods to Minimize Agency Problem Include All Except ________________

question 27

Multiple Choice

Methods to minimize agency problem include all except ________________.

• A) Offer the managers an equity stake in the firm
• B) Award the CEO stock options
• C) Allow the CEO to purchase stock via an employee stock option plan
• D) Allow the CEO to purchase bonds via an employee bond option plan

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Definitions:

Exemption

Deductions allowed by law to reduce taxable income based on the taxpayer and dependents.

Married Couple

Two individuals legally united in marriage, whose marital status can affect their tax filings, legal rights, and other societal entitlements.

Tax Liability

The aggregate tax liability of an individual, corporation, or any entity to a tax-collecting agency.

SLII

stands for Situational Leadership II, a leadership model that proposes the idea of adjusting leadership style based on the development level of followers.