Which of the Following Statements Is False

question 3

Multiple Choice

Which of the following statements is false?

• A) Increasing the pay-for-performance sensitivity comes with the added benefit of reducing managers' risk.
• B) Stock and option grants give managers a direct incentive to increase the stock price to make their stock or options as valuable as possible.
• C) By tying compensation to performance, the shareholders effectively give the manager an ownership stake in the firm.
• D) During the 1990s, most companies adopted compensation policies that more directly gave managers an ownership stake by including grants of stock or stock options to executives.

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Definitions:

Psychotic Disorder

A mental health condition characterized by a disconnection from reality, manifesting in symptoms like hallucinations, delusions, and disorganized thinking.

Substance-induced

describes conditions or disorders that are caused or exacerbated by the use of drugs, alcohol, or other substances.

DSM-5

DSM-5, the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a standardized classification of mental disorders used by mental health professionals for diagnosis in the United States.

Schizophrenia

A mental disorder characterized by delusions, hallucinations, disorganized speech or behavior, and impaired cognitive function.