What is a Contract warranty? A warranty is a representation by a party that something is true and will remain true until some point in time (generally the time of contract performance). Example: Tim owns a supply store and enters into a contract to sell Bernice a piece of equipment. Tim assures Bernice that the equipment is in good working order. Fu...

What does it mean to Reprice Stock Options? Repricing is a strategy of replacing the worthless stock options held by employees with new options. Companies use this strategy to deal with underwater stock options. Underwater stock options are those whose exercise price exceeds the fair market value of the underlying stock. How Does Repricing Stock Opt...

What are organizational dynamics? An organization can be divided into two environments: Internal environment - The internal environment is made up of (1) goals and values, (2) resources and capabilities, and (3) structure and systems. External environment - The external environment is made up of economic, legal, political, and social factors compris...

What is Analysis of Alternatives? An analysis of alternatives (AOA) is an assessment of various options present for reaching a goal. This usually involves sensitivity analysis, which is when the evaluation of quantitative estimations and calculations gets changed in an orderly way to assess their effect on the end result.  Examples include, life-cyc...

What is Vroom and Yetton's Normative Decision Model? The normative decision model was developed by Professors Victor Vroom, Philip Yetton, and Arthur Jago to assist leaders in determining the extent to which they should involve subordinates in the decision-making process based upon the nature of the situation and the subordinates.  The model directs...

What is Social Choice Theory? Social choice theory analyzes individual interests, opinions, and preferences and how they affect collective outputs and decisions. More specifically, this theory is a combination of economic models derived from the aggregation of individual judgments, inputs, preferences, and interests in arriving at collective decisio...

What is a Securities Investor Protection Corporation? The Securities Investor Protection Corporation (SIPC), is a non-profit organization that protects investors. SIPC was created upon the passage of Securities Investor Protection Act of 1970. The membership of SIPC consists of dealers and brokers under the auspices of the Securities Exchange Act of...

What is Make A Market? Make a market is a procedure whereby a person or brokerage house is ready, willing and able to buy or sell securities at quoted bids and ask prices in order to provide liquidity to the markets. From a brokers point of view, having the capability to make a market allows it to service buy or sell orders of its customers straight...

What is Action-Centered Leadership? Action-Centered Leadership, a model proposed by John Adair, distinguishes 3 groups of interrelated activities of effective leaders.  Achieving the Task. Identify aims and vision for the group, purpose, and direction. Identify resources, people, processes, systems and tools. Create the plan to achieve the task: del...

What is Three-Way ANOVA? A three-way ANOVA which is also referred to as three-factor ANOVA refers to a statistical method of ascertaining three factors' effects on an outcome. ANOVA is the acronym for analysis of variance, and variance is the data variability around the mean or average. By using ANOVA, a researcher can ascertain whether the variabil...