Which of the Following Is a Managerial Incentive to Speculate

question 9

Multiple Choice

Which of the following is a managerial incentive to speculate?

• A)Managers anticipate an unfavourable outcome of a risky strategy
• B)Managers hold a large volume of the firm's stock
• C)Managers are compensated with executive equity options
• D)Managers feel they possess inferior information about the firm

Understand the implications of pay levels, pay grades, and key jobs on the organization's pay structure and market competitiveness.

Recognize the effects of pay differentials and geographical cost variations on compensation strategies.

Realize the significance of external market factors, such as product market constraints, on pay decisions.

Understand the principles of equity theory and its application in organizational pay systems.

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Definitions:

Sustainability

A way of doing business that supports the long-term ecological balance of the environment.

Post-industrial Materials

Materials or products that have been reused, recycled, or repurposed from industrial processes, reducing waste and supporting sustainable development.

Short-termism

The focus on immediate gains or results at the expense of long-term benefits, commonly seen in business strategies and investment decisions.

Brand and Reputation

The perception and recognition of a company or product based on qualities, values, and performance, significantly influencing consumer behavior and corporate success.