- 6 Marks
Question
Agency conflicts are the differences in the interests of a company’s owners and managers. However, several remedies have been recommended to lessen this age-long managerial problem.
Explain briefly THREE of these remedies
Answer
Three remedies to agency conflicts are:
- Performance-based compensation
- Direct monitoring of managerial activities
- Stock options for managers
- Tags: Agency Conflicts, Interest
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: MAY 2018
- Uploader: Theophilus