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Managers are naturally inclined to act in their own best interests (which are not always the same as the interest of stockholders) creating agency problems.
Managers are naturally inclined to act in their own best interests (which are not always the same as the interest of stockholders) creating agency problems. Which of the following statements can help reduce agency problems? Protecting management from the threat of firing. Protecting the firm from the threat of a takeover. Preventing direct invention by shareholders. Requiring managers to also be shareholders of the firm. Banning managers and other decision makers from ownership of the firm. Taking of "poison pills
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