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:

Conservation

The practice of preserving natural resources and the environment for future generations.

Egocentrism

A cognitive trait where an individual has difficulty understanding or assuming any perspective other than their own.

Lower Socioeconomic Status

A classification for individuals or families with lower income, education, and occupational prestige compared to the societal average, often associated with greater exposure to health, educational, and social challenges.

Head Start

A U.S. initiative that delivers extensive services in early childhood education, health, nutrition, and engages parents, targeting children and their families with low income.