Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)The substantial use of stock and option grants in the 1990s greatly increased managers' pay-for-performance sensitivity.
• B)The optimal level of sensitivity of managers' compensation to the performance of their firms depends on the managers' level of risk aversion,which is hard to measure.
• C)While decreasing managers' risk exposure,increasing the sensitivity of managerial pay and wealth to firm performance does have some negative effects.
• D)In the absence of monitoring,the other way the conflict of interest between managers and owners can be mitigated is by closely aligning their interests through the managers' compensation policy.

Acknowledge the comparative profitability of long-term versus short-term customer relationships.

Identify key components necessary for calculating customer lifetime value.

Comprehend the significance of customer acquisition and retention costs.

Understand the application of the customer portfolio matrix in categorizing customers.

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Definitions:

Semantic Role

The part that each phrase plays in the “who did what to whom” drama described by a sentence. One word takes the role of being the cause of the action, another, its effect, and so on.

Predicate

The part of a sentence or clause containing a verb and stating something about the subject (e.g., 'ran' in 'the dog ran').

Phrase Structure

The hierarchical organization of syntax within a sentence that dictates the order and combination of words to form phrases and clauses.

Ambiguity

The quality of being open to more than one interpretation, explanation, or meaning.