Stock Option Is an Executive Mechanism to Prevent Financial Statement

question 13

True/False

Stock option is an executive mechanism to prevent financial statement fraud.

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Definitions:

Contracts

Legal agreements between two or more parties that outline the terms, conditions, roles, and responsibilities of a project or business arrangement.

Environment

The ecological or contextual area in which a specific entity operates, including all biological, chemical, and physical conditions affecting it.

Trust

The reliance on the integrity, strength, ability, or surety of a person or thing; cornerstone in relationships and transactions.

Stress

A physical or psychological response to internal or external pressures, often characterized by feelings of strain or tension.