Methods to Encourage Managers to Act in Shareholders' Best Interest

question 21

Multiple Choice

Methods to encourage managers to act in shareholders' best interest include
I. Threat of takeover
II. Proxy fights for control of the Board of Directors
III. Tying managers' compensation to share price performance

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

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Definitions:

Intellectual Disability

A disability characterized by significant limitations in both intellectual functioning (reasoning, learning, problem solving) and in adaptive behavior, which covers a range of everyday social and practical skills.

Subaverage Intellectual Functioning

Below average intellectual capability as demonstrated by an IQ typically under 70, and associated with difficulties in adaptive functioning.

Dominant Inheritance

A pattern of inheritance in genetics where an allele is expressed in the phenotype, even in the presence of a different allele.

Intellectual Disability

A state defined by notable restrictions in intellectual capabilities as well as in adaptive behavior, encompassing a broad range of daily social and practical abilities.