Which of the Following Would Not Play a Strategic Role

question 61

Multiple Choice

Which of the following would not play a strategic role in management compensation?

• A)Ethical issues.
• B)Strategic conditions facing the firm.
• C)The effect of a change in financial reporting method.
• D)The effect of risk aversion on managers' decision making.

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Definitions:

Lockup Agreement

A contract between a target corporation and a white knight, giving the knight an option to buy valuable property should a hostile bidder gain control of the target corporation.

Greenmail Option

A strategy where a company buys back its shares from a potential acquirer at a higher price to prevent a takeover.

Target Management

The practice of focusing organizational strategies and operations towards achieving predefined goals and objectives.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that prohibits monopolistic business practices and promotes competition.