Well-designed share options can be a way of aligning the
A)interests of managers with those of shareholders.
B)customers' interests with those of suppliers'.
C)employees' interests with those of government.
D)customers' interests with those of employees.

Question

Quizplus · Accepted Answer

Well-designed share options can create an incentive for managers to increase the value of the company and, in turn, increase shareholder wealth. This helps align the interests of managers with those of shareholders. Option B is incorrect because share options are not typically used to align customers' interests with those of suppliers. Option C is incorrect because share options are not usually used to align employees' interests with those of the government. Option D is incorrect because share options are not typically used to align customers' interests with those of employees.

Well-Designed Share Options Can Be a Way of Aligning the