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Probably the Least Effective Means of Aligning Management Goals with Shareholder

Question 57

Multiple Choice

Probably the least effective means of aligning management goals with shareholder interests is:


A) the potential for a proxy fight by an unhappy segment of shareholders.
B) basing all management bonuses on performance goals.
C) holding management salaries steady while increasing stock option grants.
D) the threat of a takeover of the firm.
E) automatically increasing management salaries on an annual basis.

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