n $1$

ing: $1$:$01$:$16$

Question $5$ of $38.$

Which of the following actions would be likely to reduce potential conflicts of interest between stockholders and managers?

a$.$ Congress passes a law that severely restricts hostile takeovers.

$$ b$.$ The company's outside auditing firm is given a lucrative year$-$by$-$year consulting contract with the company.

c$.$ The company changes the way executive stock options are handled, with all options vesting after $2$ years rather than having $20\%$ of the optons awarded vest every $2$ years over a $10$ year period.

$$ d$.$ The composition of the board of directors is changed from all inside directors to all outside directors, and the directors are compensabed weh sock rather than cash$-$

e$.$ A firm's compensation system is changed so that managers recelve larger cash salaries buf fewer long,term options to buy stock