Which of the Following Does Not Persuade Managers to Work

question 183

Multiple Choice

Which of the following does not persuade managers to work in the best interest of the stockholders?

• A) Compensation based on the value of the stock.
• B) Stock option plans.
• C) Threat of a company takeover.
• D) Threat of a proxy fight.
• E) Purely cash compensation package.

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Definitions:

Dogmatic Thinking

An approach to understanding the world that involves strong beliefs or doctrines that are not open to question or skepticism.

Categorical Thinking

The process of organizing information by grouping similar objects, concepts, or experiences into categories or “buckets” in our minds.

Mental Retardation

An outdated and offensive term previously used to describe a condition characterized by below-average intellectual function and a lack of skills necessary for daily living; now more respectfully referred to as intellectual disability.

Down Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, characterized by intellectual disability and physical abnormalities.