Backdating of Stock Options Is Unethical Because

question 1

Multiple Choice

Backdating of stock options is unethical because:

• A)It favors top executives over other company employees with respect to the number of options
• B)It purposefully manipulates the option criteria that determine their value
• C)It changes the exercise price on options to benefit top executives
• D)All of the above

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period.

Consumers

Individuals or entities that use goods and services produced within an economy, playing a central role in market demand.

Price

Price is the amount of money expected, required, or given in payment for something.

Price Elasticity

Price elasticity quantifies how sensitive the demand or supply of a product is to variations in its price.