Which of the Following Is the Best Way to Prevent

question 27

Multiple Choice

Which of the following is the best way to prevent an agency problem between shareholders and managers?

• A) Maintain a proportional relationship between a manager's bonus and the number of employees in the firm.
• B) Compensate managers to a significant degree with shares of stock in their firm.
• C) Reward managers if they keep costs below the budgeted amount.
• D) Pay managers a bonus if their division exceeds its targeted market share.
• E) Pay managers a bonus if their division exceeds its quarterly sales target.

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Definitions:

Ethics Of Care

Delivery of health care based on ethical principles and standards of care.

Personal Philosophy

An individual's set of beliefs, values, and principles guiding their understanding and approach to life.

Transpersonally

In a manner that transcends the individual self, often relating to experiences that go beyond personal identity.

Connectedness

The state of being connected or interconnected with others, particularly in the context of social relationships.