Which of the Following Is NOT a Reason for the Recent

question 18

Multiple Choice

Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?

• A)There has been a growing pressure to expense stock options in annual reports.
• B)In a falling market, stock options are underwater-the market price is below the exercise price.
• C)Financial Accounting Standard Number 313 raises the cost of using stock options.
• D)Stock options do not pay for executive performance.

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Definitions:

Consolidated Concept

A well-established idea, theory, or principle that has undergone refinement and integration with other knowledge in a particular field.

Genius

An exceptional intellectual or creative power or other natural ability, often to an extent that is very rare.

Arrogant

A descriptor for an attitude of superiority manifested in presumptuous claims or assumptions.

Fallopian Tubes

Tubes that connect the ovaries to the uterus in the female reproductive system, where fertilization of the egg by the sperm usually occurs.