The Most Common Approach to Motivating Executives to Make Decisions

question 35

Multiple Choice

The most common approach to motivating executives to make decisions that are in the best interests of stockholders is _____.

• A)high base salaries with few bonuses
• B)average base salaries with significant firm performance bonuses
• C)a long-term incentive plan using stock options
• D)average base salary with performance-based perks

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed within a particular country or region.

Particular Society

A specific group of people characterized by distinct social institutions, traditions, and cultural practices.

Learned

Pertains to knowledge or skills acquired through study, experience, or teaching.

Shared

Characteristic of something that is used or owned collectively by a group or community.