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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 happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.