Which of the following statements is CORRECT? a. Managerial compensation plans c

Question

Which of the following statements is CORRECT?

a. Managerial compensation plans cannot be used to reduce potential conflicts between stockholders and managers. b. The threat of takeover generally increases potential conflicts between stockholders and managers. c. The threat of takeovers tends to reduce potential conflicts between stockholders and managers. d. One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and stockholders is by increasing the amount of debt in the firm's capital structure. e. The creation of the Securities and Exchange Commission (SEC) has eliminated conflicts between managers and

Explanation / Answer

Well which one is it?

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