The Management of Five Square Corp

Multiple Choice

The management of Five Square Corp.wants to reduce the separation between ownership (by shareholders) and control of the firm (by professional managers) .Which of the following practices would best help the company do this?

A) Allowing employees to purchase the stock of the company at a discounted rate
B) Reinvesting the annual profits of the company into research and development
C) Issuing new additional shares to the existing stockholders in proportion to their current holdings
D) Declaring the annual profits as bonus dividends to the existing stockholders