Economics 9708 · AS & A Level · 7.8

7.8 — practice question

Which of the following would not signal a conflict of interests between a company’s managers and its shareholders?

  • Aan emphasis on sales maximisation
  • Bmanagement salaries which are linked to the long-run growth of the company’s share price
  • Cthe acceptance of ‘X’ inefficiency in the company’s production process
  • Dthe purchase of artwork for a company’s headquarters

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