1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DerKrebs [107]
3 years ago
14

Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Threat of a

takeover of the firm by unsatisfied stockholders Implementation of a stock option plan Salary raises based on length of service Management compensation tied to the market value of the firm's stock Threat of a proxy fight
Business
1 answer:
vovikov84 [41]3 years ago
7 0

Answer:

Salary raises based on length of service  

Explanation:

Agency conflict occur when the owners of a firm do not manage the company. Instead, the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.

Agency problem is more common in public companies

If management compensation tied to the market value of the firm's stock, it would incentivise managers to take steps that would ensure that the value of the company's stock increases. This is because they would also benefit if the value of the stock increases

A stock option plan gives managers the option of buying a company's stock if certain targets are met. This would motivate an employee to work in the best interest of the shareholders

A proxy fight and a takeover would make the managers to lose their jobs. Most managers would not want to lose their jobs. A threat of a takeover or a proxy fight can serve to motivate mangers to act in the best interest of the stockholders

You might be interested in
During 2018, Raines Umbrella Corp. had sales of $715,000. Cost of goods sold, administrative and selling expenses, and depreciat
Dima020 [189]

Answer:Net Income/ loss= -$37,100

Raine's operating cash flow= $174,000

Explanation:

Net income/loss for Raines Umbrella Corp In 2018

Sales                                                        $715,000

less:  Cost of goods sold                        -$446,000

Administrative and Selling expenses        -$95,000

 Depreciation                                              -$140,500

 EBIT                                                             $33,500

less: Interest                                                  $ 70,600

Net loss                                                          -$37,100

B) Raine's operating cash flow:

= EBIT + Depreciation - Taxes( Since a net loss was recorded by Raines, yhere would be no taxes  

= $33,500 + $140,500 - $0

= $174,000

7 0
2 years ago
Which statement is most appropriate for the body of a cover message?
garri49 [273]

Answer:

C

Explanation:

The statement uses an active verb and has clear, concise information that specifically applies to a job rather than a class.

3 0
3 years ago
________ is/are changes in products, services, or processes that radically change an industry's rules of the game.
sashaice [31]
Disruptive innovation are changes in products, services or processes that radically change an industry's rules of the game.  By doing this, they are able to create a new market or change the value to an existing market. The disrupt the existing market and value by improving products or services. 
7 0
3 years ago
Lists three of the most important factors that should be considered when designing a web site
rjkz [21]

making the site usable for the average user

speed website speed can make or break your entire website

contact info

5 0
2 years ago
How did the new deal change the relationship between business and labor?
Hitman42 [59]
It bettered their relationship

do you have answer choices
6 0
3 years ago
Other questions:
  • A house of quality would depict the strength of the relationship between which of the following two​ items? A. The stitching use
    5·1 answer
  • A young man is the beneficiary of a huge trust fund 35 years ago. If they had set aside $25,000, how much will be in the trust n
    7·1 answer
  • Indicators of a possible asset or income concealment include all of the following except:
    10·1 answer
  • Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-
    13·1 answer
  • Suppose that without specialization, Iran produces 4 barrels of oil and 6 bottles of olive oil, and Iraq produces 4 barrels of o
    9·1 answer
  • Sixty to sixty-five percent of its value can be used as collateral for a loan.
    15·1 answer
  • Company acquired land and buildings for $1,000,000. The land is appraised at $450,000 and the buildings are appraised at $800,00
    12·1 answer
  • You have been retained to testify as a damages expert at a binding arbitration about the financial loss your client sustained wh
    14·2 answers
  • On December 31, 2015, Howells, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost
    11·1 answer
  • General equilibrium considerations lead to the realization that import-substituting policies have the effect of_____. discouragi
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!