One Way Often Used to Insure That Management Decisions Are

question 23

Multiple Choice

One way often used to insure that management decisions are in the best interest of the stockholders is to

• A) threaten to fire managers who are seen as not performing adequately.
• B) remove management's perquisites.
• C) tie management compensation to the performance of the company's common stock price.
• D) tie management compensation to the level of earnings per share.

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Definitions:

Objective Measures

Quantitative assessments based on observable facts and data, used in evaluating performance or outcomes.

GAAP

Generally Accepted Accounting Principles are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Managerial Accounting Reports

Financial documents specifically prepared for a company's management to assist in strategic decision-making and operational planning.

According to GAAP

As per Generally Accepted Accounting Principles, which are a set of accounting standards and procedures used in the United States.