Which of the Following Is Most Likely to Motivate Executives

question 79

Multiple Choice

Which of the following is most likely to motivate executives to maximise shareholder wealth?

• A)Tying bonuses to cost reductions and meeting budget goals
• B)Offering them relatively high salaries
• C)Tying annual bonuses to increases in annual profits
• D)Compensating them with stock options that can only be exercised after five years

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Definitions:

Fixed-ratio Schedule

A type of reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses, leading to high and steady response rates.

Reinforcement

In psychology, a process in which a behavior is made more likely to occur in the future by its consequences.

Specific Number

A distinct or precisely identified quantity, often used in mathematical or statistical contexts.

Randomly Varying

Describes a process or phenomenon that changes unpredictably, without a discernible pattern or order.