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ii. Managers can be encouraged to act in shareholders best interests through incentives that reward them for good performance but punish them for poor performance.

ii. Managers can be encouraged to act in shareholders best interests through incentives that reward them for good performance but punish them for poor performance. Required; explain four (4) specific mechanisms used to motivate managers to act in shareholders best interests. (8 marks) iii. Explain four (4) demerits of the accounting rate of return technique of capital budgeting. (8 marks)

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