Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? beef up the restrictive covenants in the firm's debt agreements. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. for a firm that compensates managers with stock options, reduce the time before options are vested, i. e., the time before options can be exercised and the shares that are received can be sold. pay managers large cash salaries and give them no stock options. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock.

Richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

As the inventor of hypertension medication, onesure pharmaceuticals (osp) inc. was able to reap the benefits of economies of scale due to a large consumer demand for the drug. even when competitors later developed similar drugs after the expiry of osp's patents, regular users did not want to switch because they were concerned about possible side effects. which of the following benefits does this scenario best illustrate? a. first-mover advantages b. social benefits c. network externalities d. fringe benefits

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above