Share Options Are Used by Shareholders to Reward Senior Managers

question 42

Multiple Choice

Share options are used by shareholders to reward senior managers because managers will

• A) Become shareholders and their interests will become more closely aligned with the shareholders who hired them
• B) Value the reward as they can sell the shares immediately for cash
• C) Try to increase the Company's short-term gain, to sell their shares for greater profit
• D) Avoid taking risks, to ensure the price of their shares does not calling
• E) Appreciate any potential tax benefits from owning Canadian shares

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Definitions:

Corporate Executives

individuals who hold senior management positions within a company, responsible for making strategic decisions and overseeing operations.

Division Revenues

The income generated from the operations of a specific division within a larger corporation or organization.

Managers

Individuals responsible for planning, organizing, leading, and controlling resources to achieve organizational goals.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.