Managers Are Encouraged to Act in Shareholders' Interests By

question 33

Multiple Choice

Managers are encouraged to act in shareholders' interests by:

• A)shareholder election of a board of directors who select management.
• B)the threat of a takeover by another firm.
• C)compensation contracts that tie compensation to corporate success.
• D)Both A and B.
• E)All of the above.

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Definitions:

Business Norms

Business norms are the customary rules and standards of conduct that guide business behavior and interactions within specific industries, cultures, or markets.

External Factors

Influences from outside an organization or system that can impact its performance, including economic, social, political, and environmental forces.

Differences Arise

Refers to the emergence of disagreements or conflicts in various contexts, including cultural, political, or economic interactions.

Economic Factor

Refers to the various elements that influence the economy of a country, including inflation, unemployment rates, fiscal policies, and international trade.