Which of the Following Is True About the Practice of Backdating

question 5

Multiple Choice

Which of the following is true about the practice of backdating a stock options grant?

• A) It is illegal
• B) It is illegal in the majority of states in the U.S., but not all states
• C) It is illegal in roughly half the states in the U.S.
• D) It is unethical, but not illegal

Recognize the importance of PEST analysis in assessing international business environments.

Understand the significance of cultural, political, and legal aspects in global business operations.

Gain knowledge of the processes and documents required for working internationally, such as work permits and visas.

Comprehend the importance of compensation, benefits, and challenges faced by expatriates.

---

Definitions:

Aiding and Abetting

The act of assisting or facilitating another person in the commission of a crime.

Senior Executives

High-level managers within an organization, responsible for strategic decision-making and overseeing operational activities.

Penny Stock Reform Act

U.S. legislation aimed at increasing the transparency and regulate the trading practices of low-priced, speculative stocks, often known as "penny stocks."

Cease and Desist

An order issued by a court or a government agency to stop suspicious or illegal activities.