Which of the Following Statements About Stock Options Is False

question 17

Multiple Choice

Which of the following statements about stock options is false?

• A)Stock options are intended to give upper management the same goals as stockholders.
• B)When stock options are exercised by upper management,existing stockholders lose voting power.
• C)Stock options may create an incentive for upper management to overstate net income.
• D)An expense is reported by the company when stock options are exercised.

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Definitions:

Selective Forces

Factors in the environment that influence the reproductive success of organisms, driving the process of natural selection and evolutionary change.

Brain Size

The physical volume or mass of the brain, often associated with cognitive abilities and intelligence across different species.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to its ability to adapt to its environment.

Founder Effect

A form of genetic drift where a new population is established by a very small number of individuals, leading to reduced genetic variation from the original population.