Having the manager's compensation tied to the company's performance increases the agency problem that corporations face.
Answer the following statement true (T) or false (F)
False
The potential conflict between two parties—the principals (outside shareholders) and the agents (managers)—is an agency problem. A common method used to motivate managers to operate in a manner consistent with stock price maximization is to tie managers' compensation to the company's performance. See 1-3: What Goal(s) Should Businesses Pursue?
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The fact that price fixing helps consumers or protects competitors from ruinous competition can be used as a valid defense against the charge of price discrimination
Indicate whether the statement is true or false
How are the licensing and franchising methods of engaging in international trade different from one another?
What will be an ideal response?
An ____________________ is a list of topics that will be discussed during the meeting.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a similarity between a general partner and a limited partner in a limited partnership?
A. Both can actively participate in the management of the company. B. Both lack the protection of limited liability. C. Both have no share in the company's profits. D. Both contribute financially to the company.