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Study with quizlet and memorize flashcards containing terms like of the following actions, which one is most likely to reduce conflicts of interest between managers and stockholders Which of the following actions would be likely to reduce conflicts of interest between stockholders and managers a Which of the following actions would be likely to reduce potential conflicts of interest between stockholders and managers
The composition of the board of directors is changed from all inside directors to all outside directors, and the directors are compensated with stock rather than cash The company changes the way executive stock. Congress passes a law that severely restricts hostile takeovers
Which of the following actions would likely reduce conflicts of interest between stockholders and managers
The company changes the way executive stock options are handled, with all options. Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders The threat of hostile takeovers Financing risky projects with additional debt
Compensating managers with stock options The use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers' actions Which of the following actions would be likely to reduce conflicts of interest between stockholders and managers The company's outside auditing firm is offered a lucrative consulting contract with the company
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