Problems Associated with Rewarding Managers Based on Share-Price Movements Include

question 3

Multiple Choice

Problems associated with rewarding managers based on share-price movements include:

• A) Share prices do not often reflect the value of the business.
• B) Share prices are a 'noisy' measure of management performance.
• C) Share prices track closely the profit measures so it is more efficient to just use profit.
• D) Share prices do not often reflect the value of the business and share prices are a 'noisy' measure of management performance.

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Definitions:

Concrete-Operational Children

Describes children typically aged 7 to 11 years old who are in a developmental stage where they can logically think about concrete events but have difficulty understanding abstract or hypothetical concepts.

Decentration

The cognitive ability to consider multiple aspects of a situation simultaneously, important in child development as per Jean Piaget's theory.

Transitivity

A mathematical property indicating that if a relation holds between A and B, and also between B and C, then it must hold between A and C.

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, suggesting that individuals progress through a series of stages of moral reasoning.