Bebchuk and Fried's managerial power theory states that:
A. product, labor, and takeover markets help limit executive pay but do not work perfectly.
B. all firms have about the same quality of governance.
C. the typical corporate board is not captured by managers.
D. managers want performance-based pay but such a reward system is usually inefficient.
Answer: A
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A science that studies the behavior and interactions of human beings, individually and in groups, is known as a(n)
a. social science. b. physical science. c. interactive science. d. dynamic science.
During the rapid urbanization and industrialization between 1815 and 1859, there were no economic depressions.
Indicate whether the statement is true or false
Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $24. How many hours should Joe stay open?
A. 3 hours B. 4 hours C. 5 hours D. 6 hours
When forecasting interest rates and the direction of monetary policy, economists often examine the
A) Federal Deposit Insurance Corporation Report. B) Economic Report of the President. C) Federal Advisory Council Statement. D) Federal Open Market Committee directive.