Which of the Following Is NOT a Reason for the Recent

question 18

Multiple Choice

Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?

• A)There has been a growing pressure to expense stock options in annual reports.
• B)In a falling market, stock options are underwater-the market price is below the exercise price.
• C)Financial Accounting Standard Number 313 raises the cost of using stock options.
• D)Stock options do not pay for executive performance.

---

Definitions:

Interest Groups

Organizations that advocate for the interests of a specific sector or group of people, aiming to influence public policy or legislation.

National Rifle Association (NRA)

A prominent advocacy group in the United States, dedicated to protecting gun rights and influencing firearm policy.

Members

Individuals who are part of a group, organization, or body, sharing common interests or goals and often having specific rights or responsibilities.

Stakeholder

An individual, group, or organization that has an interest or concern in an organization or project and can affect or be affected by the organization's actions, objectives, and policies.