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In lecture, we discussed five ways to reduce shareholdefl manager conflict. Match each of these actions wath the appropriafe description. Birectors from outside the corporation

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In lecture, we discussed five ways to reduce shareholdefl manager conflict. Match each of these actions wath the appropriafe description. Birectors from outside the corporation may hold a view and make decisions that are less A. Opportunity cost biased than inside members: B. Limited liability Basing monetary rewards for manegers, such as pay and bonuses, on how woll the firm c. Independent Board of Directors is doing over the long ruin provides incentives for manapers to act in such a way as to maximize shareholder wealh D. Intervention by block holders Large institutional irmestors, sach as insurance companies and pension funds, can exert E. Financial management considerable influence on manageria behaviot. P. Threat of takeover If a firm's stock is undervalued (from poor management) cosposate tadors may attempt to acgure the firm. This gives management an incentive to maximize the firm's long term G. Maragerial compensation plans fied to firm porforms share price. Aodying for debt allows inestors to closely evaluate the contition of a firm and thus H.Monitoring gives managers an incentive to act to keep a fim fiscally tioalty

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