Which of the Following Is a Reason Why Managers Act

question 1

Multiple Choice

Which of the following is a reason why managers act to maximize shareholder wealth in Anglo-American markets?

• A)The use of stock options to align the goals of shareholders and managers.
• B)The market for corporate control that allows for outside takeover of the firm.
• C)Performance based compensation for executive management.
• D)all of the above

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Definitions:

Trade

The swapping of goods and services between two or more parties, within a single economy or across multiple economies.

Opportunity Cost

Giving up on possible rewards from various other options by selecting a single alternative.

Absolute Advantage

A condition in which a country, individual, or company can produce a particular good or service at a lower cost in terms of labor and resources than other entities.

Compasses

Navigation instruments used for determining direction relative to the Earth's magnetic poles.