Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely:
A. remain the same as the company is doing poorly.
B. be withheld and paid at a later date as the company is doing poorly.
C. be increased in order to retain her.
D. remain the same as CEO salary is based only on performance.
Answer: C
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At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and
A. have more stability than at other levels. B. have more control over employee issues. C. have less competition. D. deal with uncertain and competitive conditions. E. be more likely to understand the competition.
Which of the following statements is correct?
a. Minimum (corridor) amortization of net unrecognized gain or loss is not allowed for postretirement benefit plans. b. Immediate recognition of gains and losses is allowed for postretirement benefit plans but not for pension plans. c. Immediate recognition of gains and losses is allowed for pension plans but not for postretirement benefit plans. d. Minimum (corridor) amortization of net unrecognized gain or loss is the only amortization method allowed for postretirement benefit plans.
Courtlyn’s company uses a local river for dumping. The company is aware that the chemical it dumps causes plant life in the river to die. However, the chemical is so new that no regulations have been written about it. It appears Courtlyn’s company is reaching the ________ level of corporate social responsibility.
A. legal B. ethical C. benevolent D. social
Which of the following terms refers to buying out a hostile shareholder at a price far above the current price of the target company's stock in exchange for the hostile shareholder's agreement not to buy more shares for a period of time?
A) golden parachute B) poison pill C) porcupine provision D) greenmail