When Employees Take Risks That Are Not Financially Prudent in Their

question 15

Multiple Choice

 When employees take risks that are not financially prudent in their quest for new innovation, they are likely following in the path of the company's

• A) board of directors.
• B) founders.
• C) stockholders.
• D) new CEO.

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Definitions:

Date Of Record

The date set by a corporation on which the shareholders must be registered to be eligible to receive dividend payments.

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders.

Market Price

The amount at which an asset is bought or sold in the market.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.