Which of the Following Best Explains Why a Board of Directors

question 80

Multiple Choice

Which of the following best explains why a board of directors may grant stock options as part of a compensation package?

• A) To reduce the transferability of stocks between stockholders
• B) To bring about a separation of CEO/chair duality
• C) To align incentives between shareholders and management
• D) To change the liability of shareholders from limited to unlimited

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Definitions:

Intel

An American multinational corporation and technology company known for its semiconductor chips.

Time-Discounted Profits

The present value of future profits, accounting for the time value of money and diminishing returns over time.

Chip Production

The process of manufacturing semiconductor devices, such as integrated circuits (ICs), used in various electronic devices and systems.

Penalty Kick

A method of restarting play in soccer, awarded for certain fouls within the penalty area, where a player kicks the ball from the penalty spot aiming to score against the opposing goalkeeper alone.