CEOs Often Receive Additional Compensation If the Firm's Stock Price

question 225

True/False

CEOs often receive additional compensation if the firm's stock price appreciates. The Making Ethical Decisions box, titled, "Wagging the Dog", provides the student with a view of the kinds of ethical decisions that CEOS face. CEOs are often asked to consider the best interest of the firm and its employees, before their own self-interest.

---

Definitions:

External Variables

Factors outside the individual that can influence their behavior or the outcome of a situation, including environmental, social, or economic conditions.

Independent Variables

Factors in an experiment that are deliberately changed or manipulated to investigate their effects on dependent variables.

Dependent Variables

In an experiment, these are the variables that are being tested and measured, expected to change as a result of manipulations to the independent variables.

Participant Confidentiality

The ethical obligation to protect the privacy of individuals participating in research by not disclosing their personal information.