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:

Local-Level Issue

pertains to a problem or matter that is specific to a particular community or geographical area.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals and a sequence of steps to achieve them.

Grassroots Organizations

Local or community-based groups that work from the bottom up to effect change on particular issues or policies.

Special-Interest Organizations

Groups formed to advocate for or promote specific issues or causes that concern their members, often influencing policy and public opinion.