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:

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return in the form of interest payments to investors.

Bank Reserves

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Money Supply

The sum of all financial assets that are readily available in an economy at a given moment, including cash on hand, deposits in banks, and other easily convertible assets.

Recession 1981-1982

The recession of 1981-1982 was a severe global economic downturn characterized by high inflation, interest rates, and unemployment, particularly impacting the United States.