Which of the Following Will Control Incentive Problems in a Corporation

question 3

Multiple Choice

Which of the following will control incentive problems in a corporation?

• A)Managers checking on their employees email and other activities closely
• B)Managers forcing employees to adopt higher and stringent ethical standards
• C)Managers and employees adopting predefined ethical standards
• D)Managers and employees adopting higher and stringent ethical standards

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Definitions:

Long-Term Commitment

Refers to obligations or investments that a company plans to hold or is expected to fulfill over an extended period, typically beyond one year.

Large Amounts

This term commonly refers to substantial or significant quantities, often in the context of transactions, investments, or financial operations.

Uncertain Outcome

A situation or event where the final result is not known or cannot be predicted with certainty.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor to proceed with the project.