Shareholders have little or no ability to force managers to pursue maximization of the firm's value.
The effectiveness of a board of directors in monitoring managers will be enhanced by appointing members from the firm who are well-informed about the management problems facing the firm.
Equity ownership by managers is thought to be one of the most effective corporate control mechanisms.
Reducing the amount of debt financing can reduce the divergence between the shareholders' interests and the owner's interests.
none of the above is true
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