Which of the Following Statements Is True in the Context

question 28

Multiple Choice

Which of the following statements is true in the context of stock-based compensation?

• A) Stock options usually result in information asymmetry.
• B) Stock-based compensation schemes for executives can align management and stockholder interests.
• C) A particular cause for concern is that stock options are often granted at extremely high strike prices.
• D) Critics deny that stock-based compensations motivate managers to improve company performance.
• E) Granting more stock options often results in an increase in stockholder equity.

---

Definitions:

Beneficiary Protection

Legal measures or provisions that ensure the rights and interests of beneficiaries, particularly in insurance and estate matters, are safeguarded.

Creditors

Individuals, organizations, or entities that are owed money by debtors, having provided goods, services, or loaned money.

Child Support

A legal obligation or financial support paid by a parent for the benefit of their child following a divorce or separation.

Personal Representative

An individual appointed to manage and distribute the estate of a deceased person in accordance with their will or state law.