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49 Which of the following is the best way to prevent an agency problem between shareholders and managers! Select one a. Maintain a proportional relationship

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49 Which of the following is the best way to prevent an agency problem between shareholders and managers! Select one a. Maintain a proportional relationship between a manager's bonus and the number of employees in the form Ob Reward managers if they keep costs below the budgeted amount Oc Compensate managers to a significant degree with shares of stock in their firm. O d. Pay managers a bonus if their division exceeds its targeted market share Oe. Pay managers a bonus if their division exceeds its quarterly sales target 50 Which of the following statements is TRUE? Select one a. The study of finance only benefits students who aspire to careers in business b. Managers should choose investment projects that maximize shareholder wealth Accounting profits are always more important to shareholders than cash flows. d The presence of asymmetric information in financial markets increases the likelihood that these markets are in De investors should not be compensated with a higher return for owning risky securities since they should know better than to buy stock in a firm that has uncertain prospects

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