From a Motivation Standpoint,stock Options Are Used Not So Much

question 30

True/False

From a motivation standpoint,stock options are used not so much to reward past individual performance but,rather,to motivate employees to work in the future for the good of the company as a whole.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Management Fees

Charges levied by management for the operation of an investment fund, company, or another entity, usually calculated as a percentage of assets under management.

Consolidated Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to reinvest in its core business, or to pay debt, reported in the consolidated financial statements.

Subsidiary's Adjusted Income

The net income of a subsidiary company after making adjustments for fair value measurements, currency translation, and other accounting policies.