What are three key means to align the interests of owners (shareholders) and managers in a corporation?
What will be an ideal response?
To minimize the potential for managers to act in their own self-interest, or "opportunistically," the owners can implement some governance mechanisms. There are two primary means of monitoring the behaviour of managers. These include a committed and involved board of directors that acts in the best interests of the shareholders to create long-term value and shareholder activism wherein the owners view themselves as shareowners instead of shareholders and become actively engaged in the governance of the corporation. Finally, there are managerial incentives, sometimes called "contract-based outcomes," which consist of reward and compensation agreements. Here, the goal is to carefully craft managerial incentive packages to align the interests of management with those of the shareholders.
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Porter et al. identify several key ideas behind measuring the shared value of CP programs., including all of the following EXCEPT ________.
a. measuring only select metrics with the greatest potential. b. set goals related to both business and social impact and track progress against projections. c. use preexisting business techniques or concepts to track and evaluate results. d. innovate precise and broad measures applicable to all efforts.
Fifteen people were given two types of cereal, Brand X and Brand Y. Two people preferred Brand X and thirteen people preferred Brand Y. We want to determine whether or not customers prefer one brand over the other. At ? = .01, the null hypothesis should
A. be rejected. B. not be rejected. C. be revised. D. not be tested.
There are three directors' seats up for election. If you own 1,000 shares of stock and have been granted a total of 3,000 votes to cast in a single election, then the firm uses the voting procedure referred to as:
A) cumulative voting. B) absolute priority voting. C) sequential voting. D) straight voting. E) market share voting.
The goal regarding using an appropriate number of bins is to show the
A. number of observations. B. number of variables. C. variation in the data. D. correlation in the data.