All of the Following Are Ways to Encourage Top Managers

question 20

Multiple Choice

All of the following are ways to encourage top managers to act in the best interests of the shareholders except:

• A)Board independence might encourage it,although the evidence is inconclusive
• B)Including close personal friends of the CEO on the board of directors
• C)Incentive compensation
• D)Government regulation
• E)Threat of a hostile takeover

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Definitions:

General Framework

A broad system or structure that provides guidance or support for activities, processes, or methodologies within a particular domain.

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

General Framework

A foundational structure, set of guidelines, or system that serves as a basis for developing something more specific or detailed.

Ethical Issue

A moral dilemma that requires an individual or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).