Why Are Stock Options Programs Criticized

question 102

Multiple Choice

Why are stock options programs criticized?

• A) because they motivate executives to manage the company for the short term rather than the long term
• B) because stock prices are not always directly under the control of managers
• C) both of these
• D) neither of these

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Definitions:

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface by converging parallel lines towards a single point on the horizon.

Place Theory

A theory in hearing that suggests different areas of the inner ear's basilar membrane respond to different frequencies, contributing to our perception of pitch.

Basilar Membrane

A structure in the cochlea of the ear that plays a key role in the sense of hearing by vibrating in response to sound, thus stimulating hair cells to send nerve impulses to the brain.

Receptor Cells

Specialized cells in the body responsive to particular stimuli like light, sound, or chemicals.