The Principal Reason Behind Executive Stock Options as an Incentive

question 71

True/False

The principal reason behind executive stock options as an incentive is for senior managers to have a significant stake in the success of a business.

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Definitions:

Human Reason

The mental capacity of humans to form judgments and conclusions based on logic and critical thinking.

Market Value Ethics

The ethical considerations surrounding the determination and influence of market value in business and finance.

Corporate Manager

An individual responsible for planning, directing, or overseeing the operations and development of a corporation.

Benefits to Shareholders

Benefits to shareholders refer to the advantages or gains, such as dividends and increase in share value, that shareholders receive from their investment in a company.