An Organization That Expands Its Policy to Let Employees Submit

question 11

Multiple Choice

An organization that expands its policy to let employees submit their expense reports electronically, as an alternative to completing a paper report, is using which type of compliance strategy?

• A)Punitive - similar to threatening employees with sticks
• B)Preventative - similar to putting hurdles up in front of employees
• C)Remunerative - similar to tempting employees with carrots
• D)Generative - similar to creating a fast track for employees to follow
• E)Cognitive - similar to enlightening employees about the benefits of compliance

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Definitions:

Security Offerings

The process of issuing new securities to investors in order to raise capital for the corporation. This can include stocks, bonds, or other financial instruments.

IPO

IPO stands for Initial Public Offering, which is the process through which a private company goes public by selling its shares to the general public for the first time.

Green Shoe Option

A clause in an IPO that allows underwriters to buy and sell additional shares than originally planned, stabilizing the stock price.

Underpricing Effect

The phenomenon where new stock offerings are priced below their market value, often leading to an immediate increase in their price upon trading.