Author Question: A disadvantage of options as instruments of performance-related rewards is: a. that it exposes the ... (Read 57 times)

neverstopbelieb

  • Hero Member
  • *****
  • Posts: 534
A disadvantage of options as instruments of performance-related rewards is:
 a. that it exposes the executives to market volatility.
  b. that it increases opportunistic behavior on the part of the employees who expect to earn these incentives.
  c. that the actual monetary gains from such incentives are usually lower than other performance-related incentives provided by organizations.
  d. that once an option has been exercised and the executive has sold her shares it will have no continuing effect on her incentives to make better future decisions.

Question 2

Executives should
 A) spend an additional dollar on an activity if consumers value it by more than a dollar.
  B) do more of something if marginal revenue is positive.
  C) pend an additional dollar on an activity if consumers value it by less than a dollar.
  D) do more of something if average revenue is greater than zero.



Dinolord

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Your heart beats over 36 million times a year.

For a complete list of videos, visit our video library