Which of the Following Is NOT True

question 3

Multiple Choice

Which of the following is NOT true?

• A) Management has an incentive to issue executive stock options after bad news
• B) Management has an incentive to issue executive stock options before good news
• C) Executive stock options encourage management to pursue strategies that are best for the company in the long run
• D) Management have an incentive to time the announcement of good news just before they plan to exercise their stock options

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Definitions:

Buying Power

Represents the capacity of an individual or group to purchase goods and services, influenced by income levels, inflation, and market conditions.

Pricing Infatuation

An obsession or excessive focus on the pricing aspect of a product or service rather than its value or other attributes.

Price Cutting

A competitive strategy whereby a company lowers its product prices to attract customers and increase market share.

Sales Volume

The total number of units of a product sold within a specific time period.