Question
Corporate managers work for the owners of the corporation.Consequently, they should make decisions that are in the interests of theowners, rather than their own. What
Corporate managers work for the owners of the corporation.Consequently, they should make decisions that are in the interests of theowners, rather than their own. What strategies are available to shareholders to help ensure that managers are motivated to act thisway?
Shareholders can do thefollowing:(Select all the choices thatapply.)
A.
Write contracts that ensure that the interests of the managers and shareholders are closely aligned.
B.
Mount hostile takeovers.
C.
Ensure that employees are paid a percentage of thecompany's net income.
D.
Ensure that underperforming managers are fired.
E.
Ensure that employees are paid with company stockand/or stock options.
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