What Is the Primary Purpose of Offering an Executive Stock

question 5

Multiple Choice

What is the primary purpose of offering an executive stock options in a compensation package?

• A)providing the executive with guaranteed bonuses
• B)encouraging the executive to increase the firm's value
• C)enabling the firm to decrease the executive's base pay
• D)offering the executive long-term retirement security

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Definitions:

Cortisol

A steroid hormone produced by the adrenal cortex involved in the body's stress response, metabolism, and immune system regulation.

Prolactin

A hormone produced by the pituitary gland, primarily involved in milk production of mammals.

Graves Disease

An autoimmune disorder that results in the overproduction of thyroid hormones, causing hyperthyroidism.

Thyroid Hormone

Hormones produced by the thyroid gland, including triiodothyronine (T3) and thyroxine (T4), crucial for regulating metabolism, energy generation, and growth and development.