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    Which mechanisms can motivate managers to act in the interest of shareholders?

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    Which of the following mechanisms is used to motivate managers to act in the interest of shareholders?

    A.Bond covenants.
    B.The threat of a takeover
    C.Pressure from the board of directors
    D.Statements a and b are correct
    E.Statements b and c are correct.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:05 pm ad1c9bdddf
    https://brainmass.com/business/business-law/motivating-managers-act-interest-shareholders-28856

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    The solution provides the correct answer and also explains which mechanisms can motivate managers to act in the interest of shareholders.

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