Some of the Problems Raised by Corporate Reward Structures Include

question 50

Multiple Choice

Some of the problems raised by corporate reward structures include:

• A)focusing on long-term rather than short-term profitability.
• B)the interests of managers always being aligned with the long-range interests of the company.
• C)managers being inclined sometimes to act irresponsibly and/or illegally without an eye to legal trouble that may occur in the future.
• D)firms sacrificing the present to the future thereby promoting long-term allocational inefficiency.

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Definitions:

Zeigarnik Effect

The psychological phenomenon where uncompleted or interrupted tasks are remembered better than completed ones.

Intrusive Thoughts

Unwanted thoughts, images, or urges that repeatedly enter a person’s mind, often causing significant anxiety or discomfort.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often associated with better long-term outcomes.

Panic Button Effect

The phenomenon where access to a means of getting help in emergency situations (such as a panic button) can notably reduce anxiety and fear.