Explain some of the measures taken to reduce the agency conflict problem
What will be an ideal response?
Answer: The agency conflict problem can be reduced by taking measures that align the managers interests with those of the shareholders. For example, incentive-based compensation, such as employee stock options, helps align the interests of these two constituents.
You might also like to view...
Which of the following can help make virtual teams more effective? (Choose all that apply.)
A. Include a few members who already know each other B. Less frequent communication C. Include members who are well connected to people outside the team D. Include members who have volunteered to be part of the team E. Meeting face-to-face as infrequently as possible
Which type of structure was used by Nestle to tailor products to regional differences and to achieve regional coordination?
A) geographic-area structure B) network structure C) product-group structure D) international structure E) functional structure