One of the ways to reduce agency conflict is by A. Designing an effective compen
ID: 2630398 • Letter: O
Question
One of the ways to reduce agency conflict is by A. Designing an effective compensation package B. Having managers report to the board of directors C. Hiring outside monitors to keep track of the managers decision D. Instituting severe penalties for bad decisions. One of the ways to reduce agency conflict is by A. Designing an effective compensation package B. Having managers report to the board of directors C. Hiring outside monitors to keep track of the managers decision D. Instituting severe penalties for bad decisions. A. Designing an effective compensation package B. Having managers report to the board of directors C. Hiring outside monitors to keep track of the managers decision D. Instituting severe penalties for bad decisions.Explanation / Answer
Correct answer is:
C. Hiring outside monitors to keep track of the managers decision
Always an outisde agency that monitors. Not the board of directors, that can be a huge conflict.
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