Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interests of shareholders?A. The percentage of the firm's stock that is held by investors such as mutual funds, pension funds and hedge funds rather than by small individual investors rises from 10% to 60%. B. The percentage of executive compensation that in the form of cash is increased and the percentage coming from long-term stock options is reduced. C. The firm's founder, who is also president and chairman of the board, sells 90% of her shares. D. The state passes a law that makes it more difficult to successfully complete a hostile takeover.E. The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think without obtaining board approval.

Respuesta :

Answer:

A. The percentage of the firm's stock that is held by investors such as mutual funds, pension funds and hedge funds rather than by small individual investors rises from 10% to 60%.

Explanation:

As we know that the shareholders are the person who buys the stock of the company we can treat as an owner of their shares

For the interest of shareholders, the actions that should be taken is that the firm stock percentage i.e held by investors like mutual funds instead of small investors increased by 10% to 60% as it created the values and build a confidence

Hence, the correct option is A