Which of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial behavior. O 2) Corporations have the double taxation problem. 3) Compensating managers with more stock options and less cash income ca reduce the conflicts of interest between bondholders and managers. 4) Both a and c are incorrect. 5) Both b and c are incorrect.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter10: Corporate Governance
Section: Chapter Questions
Problem 3MC
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Which of the following statements is/are INCORRECT?
1) Takeover threats tends to affect managerial behavior.
2) Corporations have the double taxation problem.
O 3) Compensating managers with more stock options and less cash income car
reduce the conflicts of interest between bondholders and managers.
4) Both a and c are incorrect.
O 5) Both b and c are incorrect.
Transcribed Image Text:Which of the following statements is/are INCORRECT? 1) Takeover threats tends to affect managerial behavior. 2) Corporations have the double taxation problem. O 3) Compensating managers with more stock options and less cash income car reduce the conflicts of interest between bondholders and managers. 4) Both a and c are incorrect. O 5) Both b and c are incorrect.
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