Shareholders Can Ensure That Firms Pursue Goals That Are in Their

Multiple Choice

Shareholders can ensure that firms pursue goals that are in their best interest by _____.

A) binding the management with stockholder-sponsored proposals
B) ensuring that management is working towards maximizing current earnings
C) compensating managers on the basis of the firm's best performance in the last five years
D) actively implementing remedies to realign management decisions with the interests of investors
E) providing incentives to managers to motivate them to take actions that maximize stock prices