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Which of the Following Are Effective Means of Aligning Management

question 23

Multiple Choice

Which of the following are effective means of aligning management goals with shareholder interests?
I.employee share options
II.threat of a takeover
III.management bonuses tied to performance goals
IV.threat of a proxy fight


Definitions:

Processing Cost

The expenses involved in changing raw materials into finished products, including labor, materials, and overhead.

Disposal Cost

Expenses associated with getting rid of waste materials or unwanted products.

Corporate Responsibility

An approach by businesses to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Plastic Straws

Thin tubes made of plastic intended for transferring liquids from a container to the mouth of a person; associated with environmental concerns.

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