In Order to Minimize the Temptation for Managers to Act

question 61

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 as 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:

Leadership Decision Tree

A graphical representation used by leaders to make decisions by mapping out different courses of action and their potential outcomes.

Work Decisions

Choices or judgments made in a professional setting that affect job responsibilities and outcomes.

Transformational Leadership

A style of leadership where the leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of the group.

Individualized Consideration

involves tailoring leadership styles or approaches to meet the unique needs and abilities of each member of a group or organization.