In Order to Minimize the Temptation for Managers to Act

question 46

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 a 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:

Little Hans

A case study by Sigmund Freud involving the analysis of a young boy's fear of horses, which Freud interpreted in terms of the Oedipus complex.

Interpersonal Factors

Aspects of relationships between individuals that affect social and psychological functioning.

Parenting Style

The manner in which parents raise their children, characterized by various levels of responsiveness and demand.