The CEO of JLI Corp

question 12

Multiple Choice

The CEO of JLI Corp.decided to expand into a new market in 2010.At the end of 2010,JLI's stock price had decreased 5% since the beginning of the year.Which of the following statements is most correct?

• A) The CEO made a poor decision to expand because the stock price decreased during the year.
• B) The CEO made a poor decision to expand because the company's profits for the year obviously decreased, causing the drop in stock price.
• C) The CEO's decision may have been optimal, keeping the stock price from falling more than 5% for the year.
• D) CEO decisions are irrelevant because the efficient market determines the value of a company's stock.

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Definitions:

Korsakoff Syndrome

A chronic memory disorder often associated with excessive alcohol consumption, characterized by amnesia, confabulation, and impaired executive function.

Alcohol Dependency

A medical condition characterized by a strong desire to consume alcohol despite harmful consequences, leading to physical and psychological dependence.

Rum

An alcoholic beverage made from sugarcane products, such as molasses or sugarcane juice, by a process of fermentation and distillation.

Emotional Memory

Memory for the affective properties of stimuli or events.