What Guideline Should a Firm Follow to Attain the Greatest

question 13

Multiple Choice

What guideline should a firm follow to attain the greatest motivational impact from a new awards programs?

• A) Use awards infrequently
• B) Only acknowledge current recipients
• C) Give the awards privately
• D) Make sure the award is meaningful to the families of employees

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing a claim on part of the company's assets and earnings.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend payment preferences.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Corporation's Directors

Individuals elected by a corporation's shareholders to oversee the management and make major business decisions on behalf of the shareholders.