With a ________, an Executive Receives Units Instead of Shares

question 4

Multiple Choice

With a ________, an executive receives units instead of shares of company stock. In the future, the executive receives cash equal to the appreciation of the units owned.

• A)nonqualified stock option
• B)premium priced option
• C)phantom stock plan
• D)restricted stock plan

---

Definitions:

Egocentric Bias

Egocentric bias is the tendency for people to rely excessively on their own perspective and/or have a higher regard for their own attributes or abilities when analyzing situations or making decisions.

Illusory Correlation

A cognitive bias where a relationship between two variables is perceived despite no such association existing.

False Cause

Refers to a logical fallacy where it is assumed that because one event follows another, the first event caused the second.

Appeal to Ignorance

A logical fallacy that occurs when one argues that a proposition must be true because it has not been proven false or vice versa.