Which of the Following Are Effective Means of Aligning Management

question 24

Multiple Choice

Which of the following are effective means of aligning management goals with shareholder interests?
I.Employee stock options
II.Threat of a takeover
III.Management bonuses tied to performance goals
IV.Threat of a proxy fight

• A)I and III only
• B)II and IV only
• C)I, II, and III only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Supplier's Account

An account kept by a business to record transactions (like purchases and payments) related to a specific supplier.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other supplies on credit.

Life Vests

Safety devices designed to keep an individual afloat in water and reduce the risk of drowning.

Customer Account

An account that records all transactions between a business and its customers, including purchases, payments, and credits.