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:

Just-in-time

An inventory management system aimed at reducing storage costs and waste by receiving goods only as they are needed in the production process.

Transportation Costs

Expenses associated with the movement of products or materials from one location to another.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process.