Which of the Following Is a Common Problem Associated with Tracking

question 137

Multiple Choice

Which of the following is a common problem associated with tracking stocks?

• A) Tracking stocks often de-motivate managers of the business for which the stock is created
• B) Such stocks are too complicated for investors to understand
• C) Tracking stocks may create internal operating conflicts among the parent's business units
• D) Such stocks often create huge tax liabilities for the parent
• E) None of the above

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Definitions:

Intergroup Contact

The interaction between members of different social, ethnic, or cultural groups, which can reduce prejudice and improve intergroup relations.

Institutional Support

The assistance and resources provided by organizations or institutions, especially in educational, social, or professional settings, to facilitate goals or well-being.

Social Identity Theory

A theory positing that individuals define themselves in terms of group memberships and these group identifications influence behavior and attitudes.

Normative Influence

In groups, a form of influence that occurs when a member conforms to group norms in order to receive the rewards or avoid the punishments that are contingent on adherence to these norms.