________ Are a Special Form of Incentive Compensation

question 25

Multiple Choice

________ are a special form of incentive compensation. These plans provide employees the option or right to buy a certain number of shares of their company's stock at a stated price over a certain period of time.

• A) Corporate options
• B) Collective plans
• C) Share plans
• D) Stock options
• E) Dividends

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Definitions:

Bounded Rationality

A concept suggesting that the cognitive limitations of the mind, and the finite amount of time available, limit human decision-making capabilities.

Limited Information

A situation where decision-makers do not have access to all the data or facts needed to make an informed decision.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution, due to constraints like time or information.

Decision-Making Process

The steps or stages involved in choosing a course of action from several alternatives, typically involving problem identification, analysis, and the selection of the best solution.