Which of the Following Would Be Most Likely to Align

question 28

Multiple Choice

Which of the following would be most likely to align the interests of managers and shareholders?

• A)Fixed but high salaries
• B)Large bonuses
• C)Stock options
• D)All of the above
• E)None of the above

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Definitions:

Fixed Product Cost

Costs that do not vary with the level of production or sales, such as salaries of permanent employees and rent.

Factory Supervisor

An individual who oversees the work of employees in a manufacturing facility, ensuring that production goals and standards are met.

Wages

Payments made to employees, typically calculated on an hourly, daily, or piecework basis, for labor or services provided.

Finished Goods

Products that are completed and ready to be sold.