The Prevalence of Stock Options in Executive Pay Packages

question 91

Multiple Choice

The prevalence of stock options in executive pay packages

• A)eliminates managers' incentives to engage in short-term earnings management.
• B)is frowned upon by the SEC.
• C)may actually contribute to,rather than moderate,managers' short-term focus.
• D)has been widely cited as the main cause of the financial system meltdown that occurred in 2008.

Identify the key HRM tasks involved in developing and maintaining a quality workforce.

Comprehend the role and implications of affirmative action programs in workforce diversity.

Understand the legal and ethical considerations in human resource management including privacy, surveillance, and discrimination laws.

Comprehend the significance of the job analysis process and its outcomes on job descriptions and job specifications.

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Definitions:

Positive Relationship

A relationship between two variables where as one variable increases, the other variable also increases or as one decreases, the other also decreases.

Two-Tailed

A two-tailed test in statistics is used when the area under consideration is on both sides of the distribution, testing for any significant difference without specifying direction.

Sample Size

The number of subjects or units included in a sample taken from a population for the purpose of statistical analysis.

Rank-Order

A method of arranging data points based on their relative position or value in ascending or descending order.