Which of the Following Actions Would Be Likely to Encourage

question 37

Multiple Choice

Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interests of shareholders?

• A) The percentage of executive compensation that comes in the form of cash is increased and the percentage coming from long-term stock options is reduced.
• B) The state legislature passes a law that makes it more difficult to successfully complete a hostile takeover.
• C) The percentage of the firm's stock that is held by institutional investors such as mutual funds,pension funds,and hedge funds rather than by small individual investors rises from 10% to 80%.
• D) The firm's founder,who is also president and chairman of the board,sells 90% of her shares.
• E) The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think best without obtaining board approval.

Recognize the significance of social issues related to urbanization and population dynamics.

Understand the different types of concepts (formal, natural, and prototypes) and their uses in categorization.

Comprehend the basics of scientific study design, including inductive and deductive reasoning.

Grasp the importance and application of mental imagery and sensory experience representation.

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Definitions:

New York City Draft Riots

A series of violent disturbances in New York City in 1863 that were the culmination of working-class discontent with new laws passed by Congress to draft men to fight in the ongoing American Civil War.

Assault

An act that intentionally threatens, attempts, or actually inflicts physical harm on another person.

Black Population

Refers to people of African descent living in a given area, often discussed in the context of demographic studies, social status, and historical treatment.