Which of the Following Is the Best Bonding Expenditure to Help

question 47

Multiple Choice

Which of the following is the best bonding expenditure to help limit agency costs?

• A) auditing the managers work on a monthly basis
• B) a contract whereby the manager will forfeit a portion of his deferred compensation in the event of poor performance
• C) granting the manager a large number of options that will become valuable if the firm performs well
• D) paying the manager a bonus if the firm performs well

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Definitions:

Personality Clashes

Conflicts or disagreements that occur when individual differences or personal preferences are incompatible.

Dysfunctional Conflict

A disagreement that is destructive and hurts task performance.

Task Performance

The execution and completion of specific duties or responsibilities assigned to an individual or team within an organization.

Too Little Conflict

A scenario where insufficient disagreement or challenge leads to complacency and hinders creativity or improvement within a group or organization.