Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A) The substantial use of stock and option grants in the 1990s greatly increased managers' pay-for-performance sensitivity.
• B) The optimal level of sensitivity of managers' compensation to the performance of their firms depends on the managers' level of risk aversion, which is hard to measure.
• C) While decreasing managers' risk exposure, increasing the sensitivity of managerial pay and wealth to firm performance does have some negative effects.
• D) In the absence of monitoring, the other way the conflict of interest between managers and owners can be mitigated is by closely aligning their interests through the managers' compensation policy.

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Definitions:

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A contagious viral infection, also known as German measles, characterized by a distinctive red rash, often mild in children but can cause serious birth defects if contracted by pregnant women.

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A mind-changing compound obtained from the Cannabis plant, employed for either therapeutic or recreational use.

Pregnant Women

Refers to females who are in the state of carrying a developing fetus within their body.

Prenatal Care

The health care provided to a pregnant woman and her unborn baby to ensure a healthy pregnancy, including regular check-ups, nutritional guidance, and monitoring for potential problems.