Which of the Following Statements Is False

question 4

Multiple Choice

Which of the following statements is false?

• A) The Canadian rules require firms to report option grants within ten 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:

Upsetting Feelings

Emotional responses that cause distress, discomfort, or unhappiness in an individual.

Expressing Feelings

The act of communicating emotions, thoughts, or attitudes through words, gestures, or artistic expressions.

Collective Socialization

The process through which individuals learn and adopt the norms, values, and behaviors that are necessary for functioning in a group or society.

Novelist

A writer of novels, which are long written narratives that typically describe fictional characters and events.