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:

Skeptical Customers

Consumers who approach products or services with doubt and require convincing evidence before making a purchase.

Emotional Appeals

A persuasive technique that attempts to arouse emotional responses in the audience, often used in advertising and speeches to influence attitudes and behaviors.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more conflicting beliefs, ideas, or values.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors when judging others' behavior.