Stock options make managers who receive them have exactly the same goals as shareholders
Indicate whether the statement is true or false
F Option holders share in gains (without making shareholders' investments) but do not share in losses.
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Suppose the following two events occur in the market for elementary school teachers:
a. Overcrowded schools and education budget cuts have discouraged young college students from pursuing careers in teaching. b. With an increasing birth rate, the number of children entering the elementary school system is expected to increase significantly over the next ten years. What is likely to happen to the equilibrium wage and quantity of teachers as a result of these two events? A) The equilibrium wage rises and the effect on the equilibrium quantity of elementary school teachers is indeterminate. B) The equilibrium quantity falls and the effect on the equilibrium wage of elementary school teachers is indeterminate. C) The equilibrium quantity falls and the equilibrium wage of elementary school teachers rises. D) The equilibrium quantity and the equilibrium wage of elementary school teachers fall.
If the wage rate decreases from $17 to $13, by how much will the firm expand employment?
A firm operating in a purely competitive labor market has the following marginal revenue product schedule.
A. 5 workers
B. 4 workers
C. 3 workers
D. 2 workers