Which of the Following Statements Is Incorrect

question 20

Multiple Choice

Which of the following statements is incorrect?

• A)Employee stock options are not recorded as an expense when granted if they are out-of-the money under the intrinsic value method.
• B)Employee stock options will not affect the share price of a company when exercised.
• C)Employee stock options may reduce agency costs by more closely aligning interests of stockholders and managers.
• D)Employee stock options may increase the risk propensity of managers.

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Definitions:

Absolute Dating

A method of determining the specific date of an archaeological or paleontological site or artifact, using techniques such as radiometric dating.

Relative Dating

A technique used in archaeology and geology to determine the chronological sequence of historical or geological events by comparing them to other events.

Key Consultants

Experts or specialized professionals brought into a project to provide targeted advice and solutions based on their field of expertise.

Worldwide Interconnectedness

The state of being connected with each other through communication, technology, trade, etc., across the globe.