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Which of the following actions would be most likely to decrease agency costs for the firm? 1. Increase employees salaries to exceed the salaries paid

Which of the following actions would be most likely to decrease agency costs for the firm?

1. Increase employees salaries to exceed the salaries paid by competitors

2. Pay all employees based on the amount of revenue generated by the firm

3. Prohibit employees from becoming shareholders of the firm

4. Pay bonuses to employees only if profits increase from one year to the next

5. Reward high performing employees with shares of stock

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