Many Companies Use ______ to Align the Interests of Shareholders

question 65

Multiple Choice

Many companies use ______ to align the interests of shareholders with those of management.

• A) bond options
• B) share options
• C) company cars
• D) debentures

---

Definitions:

Extrinsic Rewards

Benefits or compensations given by an external party, such as money or awards, that motivate individuals to perform certain tasks.

Intrinsic Ones

Internal factors or motivations that drive behavior or action, such as personal satisfaction or pleasure.

Change Competency

The ability to effectively manage and adapt to change within an organization or environment.

Nucor's Profit-Sharing Program

A compensation scheme implemented by the steel company Nucor, designed to share a portion of profits with employees, thereby aligning their interests with the success of the company.