Why Might Stock Options Not Be the Best Way to Promote

question 59

Multiple Choice

Why might stock options not be the best way to promote coordination of goals?

• A)Stock prices can fluctuate quickly.
• B)Many of the variables that affect stock prices are beyond a manager's control.
• C)Employees generally do not value stock options very highly.
• D)None of these choices

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Definitions:

Administered Vertical Marketing System

A coordinated marketing strategy where a dominant member of a distribution channel wields its power to organize, manage, and motivate other members in the channel to ensure a cohesive and efficient marketing effort.

Contractual Vertical Marketing System

A formal agreement among members at different levels of the distribution channel to work together in order to more efficiently reach the consumer.

Service-Sponsored Franchise System

A franchise model where the franchisor provides extensive services to the franchisee, such as training and marketing support.