Options Are Less Than Perfect as Instruments to Induce Better

question 45

Multiple Choice

Options are less than perfect as instruments to induce better performance because:

• A)they are most often backdated.
• B)they are independent of market volatility.
• C)more than 90 percent of options expire worthless.
• D)executives often take risky decisions to raise the value of their options.

---

Definitions:

Merit and Fitness

Criteria used in employment decisions, focusing on the qualifications and capabilities of candidates.

Uniformed Services Employment

Employment opportunities and protections specifically related to members of the uniformed services, including military personnel.

Fringe Benefits

Non-wage compensations provided to employees in addition to their normal wages or salaries, such as health insurance, paid vacations, and retirement plans.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places open to the general public.