Which One of the Following Means of Management Compensation Is

question 109

Multiple Choice

Which one of the following means of management compensation is designed to help eliminate the agency problem?

• A) Providing cost of living adjustments.
• B) Increasing health care benefits.
• C) Offering stock options.
• D) Providing annual raises.
• E) Providing a corporate jet.

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Definitions:

Variable-interval

Variable-interval describes a schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in operant conditioning.

Classical Conditioning

A method of learning in which two stimuli are consistently associated; the response initially produced by the second stimulus ultimately becomes triggered by just the first stimulus alone.

Extinction

The process through which the conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the cessation of the conditioned response.

Conditioned Stimulus

A stimulus that initially has no response connected to it but gains the power to evoke a response through association with an unconditioned stimulus.