Managers who place the interest of the shareholders first, will tend to:

A) Be replaced on a routine basis.
B) Decline all offers to buy the firm.
C) Realize minimal value from the stock options they are granted.
D) Reward employees for unethical behavior if that behavior increases the firm's net income.
E) Be in greater demand and receive higher compensation.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and usually voting rights in the company.

Stock Options

are financial derivatives that give the holder the right, but not the obligation, to buy or sell stocks at a predetermined price within a specific period.

Unethical Behavior

Actions or practices that violate moral or professional standards of conduct.