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Basic Question 8 of 8
What is false regarding compensation plans for employees and management? A. Employees often regard the company's stability and growth is more important than equity-oriented participation plans such as profit-sharing.
B. A well-designed management compensation scheme can reduce but not eliminate agency costs.
C. If the management compensation is not enough, the management may engage an 'empire building' practice.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe potential risks of poor corporate governance and stakeholder management and benefits of effective corporate governance and stakeholder management
CFA® 2025 Level I Curriculum, Volume 2, Module 3.