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:

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

Fair Competition

Economic conditions under which businesses operate on a level playing field, with regulations in place to prevent unfair practices that harm consumers or other businesses.

Free Trade Area

A region in which a group of countries agrees to reduce or eliminate trade barriers among themselves, promoting the free exchange of goods and services.

International Monetary Fund

An international organization aiming to foster global monetary cooperation, secure financial stability, and facilitate international trade.