Which of the Following Statements Concerning Stock-Based Compensation Schemes for Executives

question 43

Multiple Choice

Which of the following statements concerning stock-based compensation schemes for executives is NOT true?

• A) Under accounting regulations that were enforced until 2005, stock options, like wages and salaries, were expensed.
• B) Huge stock-option grants can align the interests of management and stockholders.
• C) Stock-based compensation schemes can dilute the equity of stockholders.
• D) Huge stock-option grants increase the outstanding number of shares in a company.
• E) Top managers can earn huge bonuses from stock options that were granted several years prior.

---

Definitions:

Maladaptive Habits

Behaviors that are initially helpful in coping with stress or trauma but become harmful over time.

Continuity

The principle that development is a gradual, continuous process without sudden changes.

Stability And Change

The concept in psychology and other fields that examines the dynamic balance between maintaining consistency and undergoing transformation.

Terminal Illness

A disease or condition that is expected to lead to death because it is incurable.