Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)New SEC rules require firms to report option grants within two days of the grant date,which may help prevent further abuses.
• B)Studies have found evidence that the practice of timing the release of information to maximize the value of CEO stock options is widespread.
• C)Managers have an incentive to manipulate the release of financial forecasts so that good news comes out before options are granted and bad news is delayed until after the options are granted.
• D)The factor contributing most to the climb in CEO total compensation for the 1990s was the sharp increase in the value of stock and options granted each year.

---

Definitions:

Forces

Influences or drivers that cause change or affect the performance and behavior of individuals or organizations.

Direction

Guidance or supervision provided to perform tasks or to achieve goals and objectives.

Persistence

The quality of continuing steadfastly or firmly in some state, purpose, course of action, or the pursuit of an objective, despite obstacles.

Maslow's

Refers to Maslow's hierarchy of needs, a psychological theory proposing a hierarchy of human needs in the form of a pyramid, from physical survival to self-actualization.