Which of the Following Statements Is Incorrect

question 71

Multiple Choice

Which of the following statements is incorrect?

• A)Managers may be tempted to make decisions that are in their own best interests rather than shareholder interests.
• B)The compensation of bank loan officers may be tied to loan volume, which encourages a loan department to extend loans with a very high concern for risk.
• C)To prevent agency problems, some banks provide stock as compensation to managers.
• D)The underlying goal behind the managerial policies of a bank is to maximize the wealth of the bank's shareholders.

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Definitions:

Executive Summary

A brief section at the beginning of a document, report, or proposal that summarizes the main points for a quick overview.

Limitations

Restrictions or constraints that limit what can be done or how something can be done.

Proposal

A detailed plan or suggestion put forward for consideration by others, especially in a business or academic context.

Boundaries

Limits or borders that define acceptable behavior or interactions, often established to maintain professionalism and respect in relationships.