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:

Biological Factors

Refer to the physiological and genetic influences on a person's behavior and health.

Depressive Disorder

A mental disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Mood Disorders

A category of mental health disorders characterized by a serious change in mood that cause disruption to life activities, examples include depression and bipolar disorder.