Which of the Following Statements Is Incorrect

question 11

Multiple Choice

Which of the following statements is incorrect?

• A) Some firms allowed their CEOs to backdate options that they were granted to an earlier period when the stock price was lower.
• B) Backdating is completely inconsistent with the idea of granting options to encourage managers to focus on maximizing the stock price.
• C) Firms readily promote their option compensation programs and are more than willing to acknowledge that the options are an expense.
• D) All of the above are correct.

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Definitions:

Formal Operational Thinking

This stage, identified by Jean Piaget, is the final stage of cognitive development (usually beginning around age 12), where individuals learn to think abstractly and reason about hypothetical problems.

Metacognition

Metacognition refers to one’s awareness and understanding of their own thought processes, including the ability to monitor, assess, and adjust one's approach to learning or problem-solving.

Information-Processing Theorist

A scholar or researcher who studies how humans take in, utilize, store, and retrieve information, often comparing the mind to a computer.

Piagetian

Pertaining to the developmental theories of Jean Piaget, which focus on how children's cognitive abilities develop in stages.