Stock Options Attempt to Align Managers' and Owners' Interests by Tying

question 59

True/False

Stock options attempt to align managers' and owners' interests by tying managerial pay and firm performance together.

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Definitions:

Lack Of Intention

The absence of a deliberate plan or purpose in performing an action, which can affect the legal interpretation of events or documents.

Unconscionability

A situation where a contract or transaction is so unfair or one-sided that it is deemed oppressive and unenforceable under the law.

Undue Influence

Improper or unfair persuasion that leads an individual to act against their free will or to make decisions that benefit another, particularly in contracts or wills.

Voidable

A legal term describing a contract or transaction that may appear valid but can be annulled by one of the parties due to certain defects or circumstances.