Stock Options Create the Wrong Incentive in That They Create

question 10

True/False

Stock options create the wrong incentive in that they create a principal-agent problem.

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Definitions:

Seeking Recognition

The act of pursuing acknowledgment or validation from others for one's achievements or qualities.

Norms

Established standards of behavior or expectations within a group or society.

Team Effectiveness

The degree to which a team is able to achieve its goals, objectives, and missions successfully through coordinated efforts and collaboration among its members.

Workforce Diversity

Refers to a workplace that includes individuals of varying gender, age, religion, race, ethnicity, cultural background, sexual orientation, languages, education, and abilities.