AirCar LLC, a Producer of Consumer Electronics, Had Provided Its

question 87

Multiple Choice

AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC?

• A) It provided group incentives; now it provides organizational incentives.
• B) It provided individual incentives; now it provides group incentives.
• C) It provided individual incentives; now it provides organizational incentives.
• D) It provided organizational incentives; now it provides individual incentives.

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Definitions:

Clientele Effect

The theory that a company's stock price changes can attract different types of investors based on dividend policy or other corporate actions.

Efficient Markets Hypothesis

The Efficient Markets Hypothesis (EMH) posits that all known information is already reflected in stock prices, making it impossible to consistently achieve higher returns through stock market predictions.

Ex-Dividend Date

The specific date on which a stock is set to go "ex-dividend," meaning that shareholders of record as of that date will be entitled to receive the declared dividend.

Declaration Date

The specific date on which a company announces its next dividend payment, detailing the amount and when it will be paid.