Multiple Choice
Which of the following control mechanisms is commonly used to ensure that executives and managers,as agents of the firm's owners,act in the best interests of those owners?
A) Pay plan incentives do not align the interests of management and stockholders.
B) The establishment of a strong,independent board of directors.
C) Stockholders with a large stake in the firm taking a weak role on the board.
D) Stockholders read board of director reports.
E) People read what is stated in newspapers.
Correct Answer:
Verified
Correct Answer:
Verified
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