Methods to Encourage Managers to Act in Shareholders' Best Interest

question 35

Multiple Choice

Methods to encourage managers to act in shareholders' best interest include
I.Threat of takeover
II.Proxy fights for control of the Board of Directors
III.Tying managers' compensation to stock price performance

• A) I only
• B) I and II only
• C) II and III only
• D) I, II and III

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Definitions:

Deuterostomes

Animals characterized by the development of the anus from the first opening in the embryo, with humans and starfish as examples.

Metazoan

A multicellular organism of the kingdom Animalia, characterized by complex structures and systems that perform specific functions.

Animal

refers to a multicellular, eukaryotic organism that is typically mobile, responsive to its environment, and sustains itself by consuming organic matter.

Sponge

Simple aquatic animals with porous bodies through which water can circulate, belonging to the phylum Porifera.