Shareholders Rely on CEOs to Adopt Policies and Strategies That

question 19

Multiple Choice

Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares. To motivate CEOs to maximize the value of their companies, boards of directors can consider all of the following options except one. Which one is it?

• A)Boards can require that the CEOs become substantial owners of company stock.
• B)Salaries, bonuses, and stock options can be structures to provide rewards for superior performance.
• C)Salaries can be structured to provide penalties for poor performance.
• D)Dismissal for poor performance is not an option.

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Definitions:

Subject's Attention

Subject's attention refers to the focus or concentration of an individual on a specific stimulus or task, determining the degree of cognitive resources allocated to processing information.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes, before it is either forgotten or transferred to long-term memory.

Sensory Register

The component of memory that holds incoming information in an unprocessed form for a very brief period of time, allowing for initial perception.

Rehearsed

Refers to the practice or repetition of information to aid in its retention and recall.