A Nonprofit Board of Directors Is Ensuring an Organizational Goal

question 22

Multiple Choice

A nonprofit board of directors is ensuring an organizational goal is included in its advertising literature. This action is an example of applying ______.

• A) public relations
• B) tactical management
• C) operational management
• D) strategic communications

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Definitions:

Stock Appreciation Rights

A type of employee incentive plan based on increases in the price of the company stock over a set period, allowing employees to benefit from the rise in stock price without requiring stock ownership.

Compensation Expense

This refers to the total amount recognized for the cost of compensation provided to employees, which can include wages, bonuses, and benefits.

Options Pricing Model

A mathematical formula or model used to determine the theoretical price of options contracts by accounting for various factors, including the stock price, strike price, volatility, time to expiration, and risk-free interest rate.

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the issuing company, thereby reducing the amount of outstanding stock on the open market.