Which of the Following Ensures That Managers Are Rewarded Only

question 13

Multiple Choice

Which of the following ensures that managers are rewarded only when a company performs better than its competitors?

• A) A constant strike price for executive stock options
• B) A strike price that increases with time
• C) A strike price that changes in line with an index of stock prices
• D) A strike price that is tied to reported profit

---

Definitions:

Gesticulation

The use of motions of the limbs or body as a means of expression, often accompanying speech or to convey messages non-verbally.

Crowd Behavior Coding System

A methodological tool used to systematically observe and categorize the behaviors and patterns exhibited by crowds in various settings.

Normative Processes

The establishment of standards or norms that guide the behavior of individuals within a group or society.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.