Which of the Following Statements Is False

question 4

Multiple Choice

Which of the following statements is false?

• A) The Canadian rules require firms to report option grants within ten 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.

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Definitions:

Passive-aggressive

A behavior characterized by indirect resistance to the demands of others and an avoidance of direct confrontation.

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Essential Characteristics

Fundamental qualities or attributes that define the nature of something.

Figurative Language

Language that uses words or expressions with a meaning that is different from the literal interpretation.