One way often used to insure that management decisions are in the best interest of the stockholders is to
A. threaten to fire managers who are seen as not performing adequately.
B. remove management’s perquisites.
C. tie management compensation to the performance of the company’s common stock price.
D. tie management compensation to the level of earnings per share.
Answer:C
One way often used to insure that management decisions are in the best interest of the stockholders is to
A. threaten to fire managers who are seen as not performing adequately. B. remove management’s perquisites. C. tie management compensation to the performance of the company’s common stock price. D. tie management compensation to the level of earnings per share.