Identify all of the correct statements:

a. To motivate managers in non-profit firms, no employee incentives are needed

b. Managers naturally seek to maximize shareholders' wealth

c. Managers act in their own interests, and so there is no way to align their interests with those of the owners

d. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits

e. None of the answers are correct

Question

Javon Reese

Business

5 November, 14:07

Identify all of the correct statements:

a. To motivate managers in non-profit firms, no employee incentives are needed

b. Managers naturally seek to maximize shareholders' wealth

c. Managers act in their own interests, and so there is no way to align their interests with those of the owners

d. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits

e. None of the answers are correct

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Answers (1)

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Orlando Hurley · Answer 1

D.

Explanation:

In every company owners and managers have to be aligned, they need to see the same objective. To align the interests of them, it's needed to settle reward management behaviour, because this affects directly managers motivations, based on Maslow's motivation theory where he said that people has needs, if they fulfil those needs they're gonna be motivated.