In Order to Reduce Agency Problems,managers May Be Provided Compensation

question 5

Multiple Choice

In order to reduce agency problems,managers may be provided compensation that includes

• A) a fixed salary so managers' pay is not at risk, allowing managers to focus on the company's business.
• B) a bonus based on the level of profit achieved during the year.
• C) an option to buy the company's stock.
• D) incentive pay for achieving higher sales than last year.

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Definitions:

Commercial Farming

Farming for profit, where the primary aim is high yield production for sale in the market, often involving the use of advanced technologies and large scale operations.

Westward

Referring to the direction or expansion towards the west, often associated with the territorial growth of countries like the United States.

McClure's Magazine

A historic American magazine known for its investigative journalism and role in the early 20th-century muckraking movement.

Muckraking Journalists

Refers to investigative journalists in the early 20th century who exposed societal corruptions, scandals, and injustices, often leading to public outrage and reform.