When the Option Strike Prices in an Executive Stock Option-Based

question 99

True/False

When the option strike prices in an executive stock option-based compensation plan have been lowered, it is usually a defense to a hostile takeover.

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Definitions:

Consistent Application

The principle that companies should apply accounting policies uniformly throughout reporting periods to ensure comparability of financial statements over time.

Comparability

A financial accounting concept that ensures financial statements can be compared between periods and with other companies.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.