In Order to Reduce Agency Problems,managers May Be Provided Compensation

Multiple Choice

In order to reduce agency problems,managers may be provided compensation that includes

A) a fixed salary so managers' pay is not at risk, allowing managers to focus on the company's business.
B) a bonus based on the level of profit achieved during the year.
C) an option to buy the company's stock.
D) incentive pay for achieving higher sales than last year.