Adding Stock Options and Bonuses for Performance to the Compensation

question 93

Multiple Choice

Adding stock options and bonuses for performance to the compensation of a manager is intended to closer align the interest of the manager with

• A) stockholders.
• B) lenders.
• C) employees.
• D) none of the above.

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Definitions:

Thought-Activated

Technology or systems controlled by human thought, without the need for physical interactions.

Expect

To regard something as likely to happen based on available evidence or logical supposition.

Expected Value

The average outcome of a random event when considering all possible outcomes and their probabilities.

Probabilities

Measures of the likelihood or chance that a particular event will occur, expressed as a number between 0 (impossible) and 1 (certain).