Question

Question 19 (1 point) Enron gave managers stock options and bonuses even when the corporation's performance was in decline, and managers sold their equity shares in advance of other stockholders. What kind of approach is this? OA) accommodative OB) proactive O C) defensive O D ) obstructionist OE) offensive

Answer 1

Answer: Option A

Explanation: Enron was giving stock options to the managers even when it was falling in terms of its performance. It was very accommodative of the firm towards its employees. But selling of shares before other stockholders by the firm’s managers was unethical, as the duty of managers is shareholder’s wealth maximisation, not otherwise.