Answer:
The correct answer is C,top level managers may pursue their own interests over that of the company.
Explanation:
Company executives tends to pursue personal interests at the expense of the shareholders who are the bona fide owners of the business.
This selfish interest pursuance is playing out because the CEO's remuneration packages cannot be said to be justifiable in that they are not linked to any performance metrics such as the level of profits posted.
The major concern is on the stock compensation and bonuses since the best practice requires that benefits should be linked to the company's underlying performance,that way the company's performance is boosted and would be seen as a way win-win situation for both shareholders and the management team.
Answer:
Top level managers may pursue their own interests over that of the company.
Explanation:
This is because the shareholder’s or the Company’s wealth has to be used only for the benefits of the shareholders in common or to achieve the Organizational goals. It is not a partnership firm or a sole proprietorship business wherein the wealth of the Entity belongs personally to the owners of the business. In corporate, the employees, including the Top level managers cannot use the wealth thus for the personal purpose at all.
