Which of These Are NOT Basic Approaches to Minimizing the Agency

question 4

Multiple Choice

Which of these are NOT basic approaches to minimizing the agency problem?

• A) ignore the conflict of interest
• B) monitor managers' actions
• C) align managers' personal interest with those of the owners by making the managers owners
• D) all of these choices are correct.

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Definitions:

Value

The importance, worth, or usefulness of something, often determined by its perceived benefits or the satisfaction it provides.

Learning And Development

Organizational activities aimed at enhancing the knowledge, skills, and competencies of employees to improve their performance and career growth.

Base Pay

The fundamental salary an employee receives for their position, not including additional types of compensation such as overtime, bonuses, or other benefits.

Performance Pay

A compensation strategy that ties an employee's pay directly to their performance and achievements within the organization.