Why Would a Firm Most Likely Offer Executive Stock Options

question 4

Multiple Choice

Why would a firm most likely offer executive stock options in a compensation package?

• A) to offer the executive long-term retirement security
• B) to provide the executive with guaranteed bonuses
• C) to encourage the executive to increase the firm's value
• D) to prevent the executive from negotiating with other firms

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Definitions:

Sister Taxon

The closest phylogenetic relatives or groups that share a common ancestor not shared by any other group, used in evolutionary biology.

Honest Signaling

A concept where organisms display traits or behaviors that truthfully represent their fitness or quality to potential mates or rivals.

Sensory Drive

The concept that the environment can shape sensory systems and communication signals, influencing the evolution of perception and behavior in organisms.

Sensory Exploitation

A theory explaining certain traits or behaviors evolve because they exploit the preexisting sensory biases of another organism.