Most Firms Today Use Executive Stock Options,as Opposed to Other

question 56

True/False

Most firms today use executive stock options,as opposed to other incentive methods,to induce management to act in the best interests of stockholders.

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Definitions:

Observes

The act of carefully watching or monitoring something or someone to gather information.

Behavior

How a person or a group acts or responds when influenced by stimuli from the environment or from within themselves.

Individual Piece-Rate System

A compensation system where employees are paid based on the number of units they produce or tasks they complete.

Fixed Ratio Schedule

is a type of reinforcement schedule in behaviorism where a response is reinforced only after a specified number of correct responses.