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Which of the Following Are Mechanisms That Have Evolved to Mitigate

Question 38

Multiple Choice

Which of the following are mechanisms that have evolved to mitigate potential agency problems? I) Using the firm's stock options for compensation
II. Hiring bickering family members as corporate spies
III. Boards of directors forcing out underperforming management
IV. Security analysts monitoring the firm closely
V. Takeover threats


A) II and V
B) I, III, and IV
C) I, III, IV, and V
D) III, IV, and V

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