Which of the following is not a way in which agency problems can be reduced through corporate control?
A) executive compensation
B) threat of hostile takeover
C) acquisition of a foreign subsidiary
D) monitoring by large shareholders

Question

​Which of the following is not a way in which agency problems can be reduced through corporate control?
A) ​executive compensation
B) ​threat of hostile takeover
C) ​acquisition of a foreign subsidiary
D) ​monitoring by large shareholders

Quizplus · Accepted Answer

Acquisition of a foreign subsidiary is not directly related to reducing agency problems through corporate control. The other options - executive compensation, threat of hostile takeover, and monitoring by large shareholders - are all methods of aligning the interests of management with those of shareholders, which helps to reduce agency problems.

​Which of the Following Is Not a Way in Which

Which of the Following Is Not a Way in Which