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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.

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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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