Tying the salaries of top managers to the firm's stock price or to the profitability of the firm allows a firm's board of directors to
A) increase asymmetric information.
B) reduce the principal-agent problem.
C) eliminate moral hazard.
D) avoid disclosing financial statements to investors.
Answer: B
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What's the Easterlin Paradox -- and in what sense does it suggest reference-dependent preferences?
What will be an ideal response?
The iterative deletion of dominated strategies refers to the following process:
A. continue removing the weakly dominated strategies until there are no more weakly dominated strategies left to remove. B. continue removing the dominant strategies until there are no more dominant strategies left to remove. C. continue removing the dominated strategies until there are no more dominated strategies left to remove. D. continue removing the best responses until there are no more best responses left to remove.
The Board of Governors is made up of experts in:
A. fiscal policy. B. public policy. C. monetary policy. D. information systems
________ implementing export promotion policies is Japan.
A. One of the least successful countries in B. The only developed country that has been successful in C. One of the most successful countries in D. The only developed country that has banned