A Combination of Well-Designed Management Compensation Contracts,the Market for Corporate

question 54

Multiple Choice

A combination of well-designed management compensation contracts,the market for corporate takeovers and a well-informed labour market should:

• A) not be necessary as any one of these methods will control a manager's actions.
• B) ensure that managers only act in their own self-interest.
• C) mean that, on average, managers work in the best interests of owners.
• D) remove any monitoring and bonding costs required under PAT.

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Definitions:

Performance

The act of performing or carrying out tasks and the efficiency or effectiveness with which these are executed.

Flash

A technology used in photography and devices to produce a brief burst of light, typically used to illuminate a scene.

NVRAM

Non-Volatile Random Access Memory, a type of memory that retains data after the system power is turned off.

SSDs

Solid State Drives are a type of data storage device that uses integrated circuit assemblies to store data, known for their fast read/write speeds and lack of moving parts.