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For question number eight please answer all of the following correctly:
8. Stockholder and manager conflicts Aa Aa Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage the management team to align their performance with organizational goals. Executives are often compensated above and beyond their salary and benefits. Which of the following perquisites would not encourage managers to maximize long-run shareholder wealth? O A percentage of the companys profits O Stock options O The use of a private jet Vision Tech is a software company based out of San Francisco. Its stockholders are mostly individual investors and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in Vision Techs stock, would direct shareholder intervention be more or less likely to motivate the firms management? O Less likely O More likely

Vision Techs stock price is currently trading at $20 per share. The consensus among analysts is that the intrinsic value of Vision Techs stock is $30 per share. Is Vision Tech more or less likely to receive a hostile takeover bid? O Less likely O More likely
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