When Executives Have Ownership Positions or Stock Options with Their

question 84

Multiple Choice

When executives have ownership positions or stock options with their employing firm, they are

• A) going to actively defend their firm from takeover attempts.
• B) likely to gain financially if their employing firm is taken over by another.
• C) pressure the board of directors to reprice their stock options.
• D) likely to be terminated by the acquiring firm even in a friendly takeover.

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Definitions:

Experimental Method

A research method involving the manipulation of variables to establish cause-and-effect relationships.

Cause-And-Effect

The principle that suggests every event (cause) leads to a certain result (effect), underlining the relationships between actions and outcomes.

Natural Setting

A real-world environment where behavior and events occur spontaneously, outside of a controlled or laboratory setting.

Within-Subjects Design

A research design in which the same subjects are used in each condition of the experiment, allowing for direct comparison of different treatments or conditions on the same individuals.