The Compensation Package for Divisional Managers of Grant Enterprises Consists

question 45

Multiple Choice

The compensation package for divisional managers of Grant Enterprises consists of (1) a salary of £120,000, (2) a bonus of 20 percent of the increase in divisional income, and (3) stock options for 5,000 shares of Grant stock. The options permit the managers to purchase the stock at £40 per share. The Western Division reported divisional income of £1,000,000 for last year and £1,300,000 for the current year. The Western Division's manager exercised stock options for 5,000 shares of Grant stock at a current market price of £55 per share.
The total amount of compensation for the Western Division's manager is

• A) £380,000
• B) £320,000
• C) £285,000
• D) £255,000

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Definitions:

Hallucinations

Hallucinations are perceptions in the absence of external stimuli, such as seeing, hearing, feeling, tasting, or smelling things that are not there.

Delusions

False beliefs held with conviction, despite evidence to the contrary, often found in psychiatric conditions like schizophrenia.

Tardive Dyskinesia

A disorder resulting in repetitive, involuntary movements, often a side effect of long-term use of antipsychotic medications.

Neurological Disorder

A disorder of the nervous system that can affect brain function, causing symptoms such as paralysis, muscle weakness, poor coordination, and loss of sensation.