The Chronic Problem with Stock Options Is That Firms Have

question 11

True/False

The chronic problem with stock options is that firms have traditionally used them to reward managers for even lackluster performance.

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Definitions:

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.

S Corporation

A close business corporation that has most of the attributes of a corporation, including limited liability, but qualifies under the Internal Revenue Code to be taxed as a partnership.

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, or other legal entities to fund public expenditures.

Close Corporation

A private company characterized by a limited number of shareholders, and typically, more informal management and operations.