Which of the Following Can Help Align the Behaviour of Managers

question 62

Multiple Choice

Which of the following can help align the behaviour of managers with the goals of shareholders?

• A) management compensation
• B) managerial labour markets
• C) an independent board of directors
• D) all of the above

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Definitions:

Exemption Clause

A contractual term that limits the liability of one party in certain circumstances or for particular outcomes.

Technologically-Inclined

Possessing a natural interest or skill in technology and the use of technological tools and processes.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Condition Subsequent

A condition under which the obligations of a contract will end.