Managers Who Receive Stock Options in Their Firms as Part

question 20

Multiple Choice

Managers who receive stock options in their firms as part of their compensation may be most interested in:

• A)level income in their firms because level income is an indication of stability and stability leads to higher stock prices.
• B)income volatility in their firms because income volatility can lead to stock price volatility which can allow the exercise of stock options at times advantageous to the managers.
• C)increasing income in their firms because increasing income leads to higher stock prices and an increasing value of their investment in the firm.
• D)decreasing income in their firms because decreasing income leads to lower stock prices which gives the holders of stock options an opportunity to exercise those options at advantageous stock price levels.

Distinguish between the various factors influencing obedience and conformity.

Analyze the behavioral, cognitive, and affective components of attitudes.

Understand the methods of persuasion and factors affecting its success.

Realize the impact of social contexts on individual behavior and attitude formation.

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Definitions:

Goblet Cell

A column-shaped cell found in the respiratory and intestinal tracts, which secretes mucus to trap and move pathogens and dirt.

Seromucous Gland

A gland that produces both serous fluid (a watery solution) and mucous (a thicker, protective secretion).