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:

Surveillance

The monitoring of behavior and activities, typically for protection, security, or gathering information.

Normalization

A social process by which some practices and ways of living are marked as “normal” and others are marked as “abnormal.”

Heterosexuality

Sexual attraction or orientation towards individuals of the opposite sex.

Sexual Double Standard

A societal norm that allows or even encourages sexual freedom and experimentation in men more so than in women.