1. )

Generally, firms should attempt to base mangers' compensation on

		verifiable results.
		how good they look.
		the number of hours they work.
		perks consumed.
		the number of years of managerial experience.

Question 4

Agency costs can be reduced by

		monitoring managers' efforts, monitoring managers' actions, and intervening when managers veer off-course.
		monitoring managers' efforts only.
		intervening when managers veer off-course.
		monitoring managers' actions only.
		monitoring managers' efforts and managers' actions.