Which of the following help convince managers to work in the best interest of the stockholders?
I. compensation based on the value of the stock
II. stock option plans
III. threat of a proxy fight
IV. threat of conversion to a partnership
A) I and II only
B) II and III only
C) I, II and III only
D) I and III only
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

Compensation based on stock value and stock option plans align managers' interests with stockholders. The threat of a proxy fight can pressure managers to act in stockholders' interests. Conversion to a partnership is not a typical threat for public companies.

Which of the Following Help Convince Managers to Work in the Best