Kokan Inc, a Marketing Company, Includes Stock Options and Stock Purchase

question 83

Multiple Choice

Kokan Inc., a marketing company, includes stock options and stock purchase plans in executive pay. Executives at the company will want to do what is best for Kokan because that will cause the value of the stock to grow. What is being exemplified in this scenario?

• A) Scanlon plan
• B) balanced scorecard
• C) long-term incentives
• D) merit plan
• E) short-term incentives

---

Definitions:

Buying Securities

The act of purchasing financial instruments such as stocks, bonds, and mutual funds with the intention of generating returns.

Offer

A proposal by one party to enter into a contract with another party, specifying the terms by which they are willing to engage in a transaction.

Price Based

A strategy or decision-making process that prioritizes pricing as the main factor, often used in marketing and sales strategies.

Difference-in-Difference Estimate

A statistical technique used to measure the effect of a specific intervention or treatment by comparing the before-and-after differences in groups.