Identify all of the correct statements: a. Managers act in their own interests, and so there is no way to align their interests with those of the owners b. None of the answers are correct C. To motivate managers in non-profit firms, no employee incentives are needed d. Managers naturally seek to maximize shareholders' wealth To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits e.

Identify all of the correct statements: a. Managers act in their own interests, and so there is no way to align their interests with those of the owners b. None of the answers are correct C. To motivate managers in non-profit firms, no employee incentives are needed d. Managers naturally seek to maximize shareholders' wealth To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits e.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Identify all of the correct statements:
a. Managers act in their own interests, and so there is no way to align their interests with those of
the owners
b.
None of the answers are correct
C.
To motivate managers in non-profit firms, no employee incentives are needed
d. Managers naturally seek to maximize shareholders' wealth
To align the interests of managers and owners, owners must design systems to monitor and
reward management behavior that increases the firm's profits
e.

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The tension between the interests of the CEO and the interests of long-term stakeholders helps to explain why: Group of answer choices A. Conflicts of interest can easily happen. D. Both A & B B. Boards of directors need to maintain their independence from executives. C. Absence of agency risk is apparent.
Please do not give solution in image format thanku Acompany needs financial objectives: to indicate to employees that financial objectives always take precedence over strategic objectives. to convince shareholders that top management is acting in their interests. because without adequate profitability and financial strength, the company’s ultimate survival is jeopardized. to overtake key competitors on such important measures as net profit margins and return on investment. to translate the company’s business model into action items.
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What is the commonly-cited objective of corporate managers in make decisions for a firm? Maximize the value of common shares outstanding. Maximize total revenue. Minimize total expenses. Minimize the risk of bankruptcy.