Which of the Following Is Considered to Be an Important

question 16

Multiple Choice

Which of the following is considered to be an important economic consequence of incentive compensation plans using stock options?

• A)dilution of ownership interests.
• B)the current ratio is affected.
• C)the effects on the financial statements are costly to quantify.
• D)the effect on cash flows

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Definitions:

Organizational Culture

The collective values, beliefs, and principles of organizational members that shape their interactions and behavior in the workplace.

Moral Leadership

A situation in which the leader takes a moral stance on an issue, and convinces others to do the same.

Ethical Climate

A work environment's set of moral values, practices, and beliefs that guide behavior and decisions within an organization.

Whistleblower

An employee who discloses organizational wrongdoing to parties who can take action.