What Is the Drawback of Stock Ownership as a Form

question 31

Multiple Choice

What is the drawback of stock ownership as a form of incentive pay?

• A) Financial benefits mostly come when the employee leaves the organization.
• B) Employees have the right to participate in votes by shareholders, hence reducing the negotiating power of the employer.
• C) It causes the employers to lose control over their employees.
• D) The employees will not benefit even if the organization is performing well.
• E) Stock options do not provide any ownership to employees, instead offering an equivalent sum.

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Definitions:

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as efficiently as possible.

Productive Systems

Systems or mechanisms designed to generate outputs at an efficient rate by effectively using inputs.

Transform Resources

Involves altering or developing organizational resources to enhance efficiency or achieve a specific goal.

Operating Efficiencies

The capability of a firm to maximize outputs from given inputs, thereby minimizing its costs.