Multiple Choice
Which of the following is a disadvantage associated with stock options?
A) They may increase risk taking.
B) They motivate executives to act like owners.
C) They align incentives with shareholder interests.
D) They encourage executives to create stock value.
Correct Answer:
Verified
Correct Answer:
Verified
Q101: _ programs express ownership as a percentage
Q102: Effective boards have well-prepared CEO succession plans
Q103: There is little overlap in different world
Q104: Outsiders bring a fresh strategic perspective.
Q105: CEO compensation is dependent on the compensation
Q107: The key to using incentives is to
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Q109: There is a perception that annual bonuses
Q110: What are some of the potential disadvantages
Q111: Discuss the two drawbacks to the bonus-plan