Which of the Following Make Up a Governance Package

question 19

Short Answer

Which of the following make up a governance package?
a. Internal Mechanisms + External Mechanisms.
b. Carrots to motivate managers such as stock options.
c. Sticks that may result in CEO and top management team turnover.
d. The Market for Corporate Control.
e. The Market for Private Equity.

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Definitions:

Expected Return

The anticipated profit or loss from an investment, taking into account the probability of varying outcomes.

Pure Time Value

The portion of an option's price that reflects the potential for value change based on the time remaining until its expiration.

Market Risk Premium

The bonus yield an investor projects to receive by placing their money in a risky market portfolio instead of in assets that carry no risk.

Market Rate

The prevailing interest rate available in the marketplace.