Which of the Following Ensures That Managers Are Rewarded Only

question 13

Multiple Choice

Which of the following ensures that managers are rewarded only when a company performs better than its competitors?

• A) A constant strike price for executive stock options
• B) A strike price that increases with time
• C) A strike price that changes in line with an index of stock prices
• D) A strike price that is tied to reported profit

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Definitions:

Preoperational

The second stage in Piaget's theory of cognitive development, characterized by symbolic thought and egocentrism, typically occurring from ages 2 to 7.

Male Systemizing Tendency

A theory suggesting that males are, on average, more inclined towards understanding and building systems, as opposed to empathizing.

Autism

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Stranger Anxiety

The fear and apprehension that infants start showing towards strangers, typically evident around 8 to 12 months of age.