Which one of the following represents the best effort to reduce the agency problem

Q: Which of the following statements best represents the agency problem?

Which of the following statements best represents the Agency Problem? Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. The agency problem results from the separation of management and the ownership of the firm.

Q: Which of the following examples is likely to reduce agency problems for a corporation?

The correct answer is d. If the managers compensation increases when the stock price goes up, this manager will have an incentive to maximize the value of all shares. This is the main reason for the stock options and stock grants provided as compensation to the executives of large corporations.

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How can we reduce agency problems?
Which one of the following actions is the best example of an agency problem?
Which of the following statements best represents the agency problem?
Which of the following examples is likely to reduce agency problems for a corporation?

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How can we reduce agency problems?

You can overcome the agency problem in your business by requiring full transparency, placing restrictions on the agent's capabilities, and tying your compensation structure to the well-being of the principal.

Which one of the following actions is the best example of an agency problem?

Which one of the following actions is the best example of an agency problem? Paying management bonuses based on the number of store locations opened during the year.

Which of the following statements best represents the agency problem?

Which of the following statements best represents the "Agency Problem"? Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. The agency problem results from the separation of management and the ownership of the firm.

Which of the following examples is likely to reduce agency problems for a corporation?

The correct answer is d. If the manager's compensation increases when the stock price goes up, this manager will have an incentive to maximize the value of all shares. This is the main reason for the stock options and stock grants provided as compensation to the executives of large corporations.