The Rationale for the Use of Stock Options Is That

question 33

Multiple Choice

The rationale for the use of stock options is that they motivate executives to ________ and take reasonable risks that result in the company's stock price increasing.

• A) work harder
• B) keep an eye on the stock market
• C) act like owners
• D) take less initial salary

---

Definitions:

Production Era

The period in business history when the focus was primarily on production efficiency and product output, rather than on customer needs or desires.

Assembly Lines

A manufacturing process in which parts are added to a product in a sequential manner using optimally planned workflows in order to create a finished product efficiently.

Relationship Management

Strategies and practices for managing an organization’s interactions with customers, clients, and sales prospects.

Short-term Interactions

Brief or temporary exchanges or relationships between individuals or entities, often with specific and limited objectives.