Methods to Minimize Agency Problem Include All EXCEPT

question 16

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.

Comprehend the concepts of micromanagement and its effects on team performance.

Understand the significance of emotional support and positive communication in team settings.

Recognize the role of organizational citizenship behavior in enhancing workplace environment and productivity.

Identify the importance and methods of maintaining professional relationships and behaving ethically towards coworkers.

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Definitions:

Shortage Costs

Costs incurred when demand exceeds supply, often related to lost sales and the cost of restocking.

Current Assets

Current assets represent a company's assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Credit Manager

A professional responsible for overseeing a company's credit granting process and managing the credit risks and policies.

Accounts Receivable

Payments pending from customers to a business for items or services that have been supplied but not yet remitted.