The Stock Option Form of Bonus Payments to Managers Usually

question 47

Multiple Choice

The stock option form of bonus payments to managers usually:

• A)Motivates well even in extended market downturns.
• B)Can lose some motivation because of the delay in reward.
• C)Focuses on the short-term.
• D)Is not consistent with shareholder interests.
• E)Has less risk than other types of bonus payment plans.

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Definitions:

Personal Space

The physical area surrounding an individual that is considered personal or private, into which others cannot intrude without causing discomfort.

Geographic Component

Elements related to or determined by the physical location, features, and spatial relationships on Earth.

Interpersonal Relations

The interactions and associations between two or more people, including relationships of all forms.

Equity Theory

A concept in social psychology that posits individuals assess their relationships by analyzing the balance between their inputs (such as effort, time, money) and the outcomes (rewards, recognition) they receive, compared to others.