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:

Battery

A legal term referring to the intentional and offensive touching of another person without their consent.

Assault

An act that creates an apprehension in another of an imminent, harmful, or offensive contact.

Torts against Persons

Legal wrongs committed against individuals, which can include actions like assault, battery, defamation, or invasion of privacy.

Torts against Property

Legal wrongs that result in harm to someone's property, including acts such as trespassing, vandalism, and theft.