Why Are Corporate Executives Are Often Guaranteed "Golden Parachutes" If

question 73

Multiple Choice

Why are corporate executives are often guaranteed "golden parachutes" if they should be fired?

• A) To give them the incentive to take the higher levels of risk desired by stockholders.
• B) To ensure that they exercise great caution in spending stockholders' money.
• C) To encourage the most experienced people to apply for the executive positions.
• D) To provide a signal to the public that the firm is on solid financial ground.

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Definitions:

Technological Innovations

The introduction of new technologies or the improvement of existing technologies to create better products, services, or processes.

Data Processing

The collection, manipulation, and management of data to produce meaningful information.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Health Reform Plan

A strategic approach implemented to improve and enhance the organization, delivery, and financing of healthcare services.