Which of the Following Observations Concerning Backdating of Options Is

question 12

Multiple Choice

Which of the following observations concerning backdating of options is true?

• A) It will not result in restatement of financial statements.
• B) The extraordinary timing and frequency of occurrences defied statistical probability.
• C) There is no concrete evidence that managers gained because of this practice.
• D) It is an accepted means of compensating managers who perform exceedingly well.

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Definitions:

Isoprene Units

Five-carbon hydrocarbon monomers that make up certain lipids such as carotenoids and steroids.

Carotenoids

A class of pigments found in plants that are responsible for yellow, orange, and red colors and play roles in photosynthesis and photoprotection.

Steroids

Complex molecules containing carbon atoms arranged in four attached rings, three of which contain six carbon atoms each and the fourth of which contains five (e.g., cholesterol and certain hormones, including the male and female sex hormones of vertebrates).

Purine Base

A type of nitrogen-containing base, including adenine and guanine, which are components of DNA and RNA.