Which of the following situations would most likely encourage a firm's managers to make decisions that are in the best interests of stockholders?
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 firm's founder, who is also the president and chairperson of the board, sells 85% of her shares.
D. The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think best without obtaining board approval.
E he 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%.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following situations would most likely encourage a firm's managers to make decisions that are in the best interests of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
In 2016, the company purchased $5,691 in new fixed assets. The tax rate is 30 percent. How much in fixed assets did the company sell?
Answers (1)
Which of the following countries is on the best terms with North Korea and has demonstrated this in their treatment of 2010 events concerning disputes (sometimes violent) between North and South Korea over maritime boundaries?
Answers (1)
Johnson Corporation has just paid a dividend of $4.45. The company has forecasted a growth rate of 8 percent for the next several years. If the appropriate discount rate is 14 percent, what is the current price of this stock?
Answers (2)
The depth of a product mix is a measure of the average number of individual products within each line. true or false
Answers (1)
Kyle is applying to be a police officer. In his interview, he describes that he loves watching the news and following current cases. He explains that he is honest, caring, compassionate, and has a very deep sense of integrity.
Answers (1)
New Questions in Business
Which tab in the Group Policy Results window shows all events in Event Viewer that are generated by group policies, and can be used to view the relevant information on a remote computer?
Answers (1)
The Backwoods American company operates a telephone order system for a catalogue of its outdoor clothing prod- ucts. The catalogue orders are processed in three stages.
Answers (1)
Using notes outside of given key to produce heightened color is referred to as A. Orchestration B. Chromatisicm C. pallete work D. Tonality
Answers (2)
Which of the following are not excludable as an employee fringe benefit? a. Public transportation costs of $130 per month provided by the employer b. Employee deductions of $4,200 for dependent childcare expenses c.
Answers (2)
What was ireland's greatest export during the 1840s?
Answers (2)