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7. Match the following terms with the examples as appropriate: (Points : 4) Answ

ID: 2390280 • Letter: 7

Question

7. Match the following terms with the examples as appropriate:
(Points : 4)
Answer Potential Matches:
: Managerial compensation 1 : McDonald's work to redesign packaging items with recyclable materials.
: Social responsibility 2 : Protection against financial malpractices and accounting fraud.
: Sarbanes-Oxley Act 3 : incentive to encourage managers to increase share value.
: Agency cost 4 : the decision of a manager to forgo a risky investment because it may pose a risk to his/her job.
: Insider trading 5 : Steward's sale of ImClone stock as result of information provided by the company's CEO before an announcement was made public that significantly decrease ImClone's stock price.

Explanation / Answer

: Managerial compensation 1 : incentive to encourage managers to increase share value. : Social responsibility 2 : Protection against financial malpractices and accounting fraud. : Sarbanes-Oxley Act 3 :Steward's sale of ImClone stock as result of information provided by the company's CEO before an announcement was made public that significantly decrease ImClone's stock price. : Agency cost 4 : McDonald's work to redesign packaging items with recyclable materials. : Insider trading 5 : the decision of a manager to forgo a risky investment because it may pose a risk to his/her job.

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