Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) New SEC rules require firms to report option grants within two 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:

Prestige Proposition

A marketing strategy that emphasizes the luxury, exclusivity, or superior status of a product or service to attract high-end consumers.

Public Relations

The nonpersonal communication of information that is not paid for by an individual or organization.

Royal Family

The immediate family of a king or queen, including spouses, children, and sometimes extended relatives, who typically hold ceremonial, social, or political roles.

Suggestive Proposition

A proposition that implies that the prospect should act now.