Identify All the Correct Statements

question 6

Multiple Choice

Identify all the correct statements:

• A)Managers naturally seek to maximize shareholders' wealth
• B)Managers act in their own interests,and so there is no way to align their interests with those of the owners
• C)To motivate managers in non-profit firms,no employee incentives are needed
• D)To align the interests of managers and owners,owners must design systems to monitor and reward management behavior that increases the firm's profits
• E)none of the above

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Definitions:

Stocks

Shares of ownership in a company, giving shareholders a stake in the company's assets and earnings.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional stock.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Corporate Decisions

Strategic choices made by a company's management or board of directors regarding the organization's operations, financial strategies, and overall direction.