Which of the Following Mechanisms Is Not Used by Shareholders

question 95

Multiple Choice

Which of the following mechanisms is not used by shareholders to get managers to act in shareholders' best interests?

• A) Threat of firing.
• B) Managerial compensation.
• C) Performance shares.
• D) Threat of takeover.
• E) Answers b and c above.

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Definitions:

Self-efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Depression

This condition, defined by a consistently low emotional state or a lack of enthusiasm for activities, notably hinders regular daily activities.

Downward Social Comparison

A defensive tendency to compare oneself with someone whose troubles are more serious than one’s own.