Which of the Following Best Explains Why a Board of Directors

question 41

Multiple Choice

Which of the following best explains why a board of directors may grant stock options as part of a compensation package?

• A) to reduce the transferability of stocks between stockholders
• B) to bring about a separation of CEO/chair duality
• C) to align incentives between shareholders and management
• D) to change the liability of shareholders from limited to unlimited

---

Definitions:

Pollination

The process of transferring pollen from the male part of a flower to the female part, resulting in the fertilization and production of seeds.

Seed

A seed is the reproductive unit of a flowering plant, encapsulating an embryo and nutrients for germination, potentially growing into a new plant.

Dormancy

A period in an organism's life cycle when growth, development, and physical activity are temporarily stopped to conserve energy during unfavorable environmental conditions.

Abscisic Acid

A plant hormone that regulates growth and development, and mediates stress responses such as drought tolerance.