All of the Following Statements Regarding the Backdating of Stock

question 9

Multiple Choice

All of the following statements regarding the backdating of stock options is accurate EXCEPT:

• A) This practice ensures that the recipient automatically realizes a profit.
• B) It takes away from the purpose of stock options, which is to incent future performance.
• C) Company performance does not have to improve in order for the stockholder to make a profit.
• D) The date when the stock option was priced higher is to be considered the date of the award.
• E) It does not motivate executives to perform well because they are guaranteed a profit.

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Definitions:

Centration

A term in cognitive development where a child is only able to focus on one aspect or dimension of an object or situation at a time.

Guided Participation

A teaching method where an experienced person helps a learner by engaging in a shared activity, gradually increasing the learner's responsibility.

Mentor

A person who provides guidance, advice, and support to a less experienced individual, often in a professional or academic context.

Pediatrician

is a medical doctor specializing in the health and medical care of infants, children, and adolescents.