A Criticism of Stock-Based Compensation Plans Is That

question 32

Multiple Choice

A criticism of stock-based compensation plans is that

• A) they discourage empire building.
• B) they induce managers to focus on the short term.
• C) managers do not like them.
• D) they dilute stockholders' equity.
• E) they are publicly reported and therefore not subject to abuse.

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Definitions:

Phosphorylation

The addition of a phosphate group to a molecule, a crucial process in biology that modulates the function of proteins and other molecules in cells.

Excitatory Postsynaptic Potential

A temporary increase in postsynaptic membrane potential due to the flow of positively charged ions into the postsynaptic cell, making it more likely to fire an action potential.

Depolarization

The reduction in the electrical charge difference across a cell's plasma membrane, leading to the initiation of an action potential.

Resting Potential

The electrical charge difference across the cell membrane while a neuron is at rest, typically around -70mV, enabling the potential for action potentials.