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:

Chloroform

Chloroform is a colorless, sweet-smelling organic compound that has been used as a solvent and an anesthetic in the past, now recognized for its environmental and health implications.

Three-dimensional Structure

Refers to the spatial arrangement of atoms in a molecule or complex, establishing its shape.

Dichloroethene

An organochloride compound containing two chlorine atoms attached to a double-bonded carbon structure; used in organic synthesis and as an intermediate in the production of chlorinated solvents.

Molecular Dipole Moment

A measure of the separation of positive and negative electrical charges within a molecule, influencing its polarity and interactions with other molecules.