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( The goal of the financial manager ) There are several measures that can be taken to help limit the agency problem. ( Select the
The goal of the financial manager There are several measures that can be taken to help limit the agency problem. Select the best choice below.
A Compensation plans can be put in place to reward managers when they maximize shareholder wealth.
B Firms that fail to maximize shareholder wealth may be taken over and their management team replaced.
C The board of directors can actively monitor the actions of managers to keep pressure on them to act in the best intere st of shareholders.
D Financial markets play a key role in monitoring management.
E All of the above are correct.
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