A local family-run Greek restaurant has been a part of the community for twenty years. Their mission is to provide local, fresh, healthy, nutritious, and great-tasting food at reasonable prices in a clean, friendly, convenient environment. Their son studied business in college. When he returned to run the restaurant, he wanted to make the business more community-minded and environmentally responsible. What are some additions that could be implemented which are aligned with this company’s values?

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.