Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)The substantial use of stock and option grants in the 1990s greatly increased managers' pay-for-performance sensitivity.
• B)The optimal level of sensitivity of managers' compensation to the performance of their firms depends on the managers' level of risk aversion,which is hard to measure.
• C)While decreasing managers' risk exposure,increasing the sensitivity of managerial pay and wealth to firm performance does have some negative effects.
• D)In the absence of monitoring,the other way the conflict of interest between managers and owners can be mitigated is by closely aligning their interests through the managers' compensation policy.

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Definitions:

Hand Skills

Abilities involving the use of the hands, including fine motor skills such as writing, grasping, and manipulating objects.

Proximodistal Development

A pattern of growth and development in children where physical and motor skills progress from the center of the body outward to the extremities.

Growth Spurt

A rapid increase in physical growth, often experienced during puberty, characterized by accelerated growth in height and weight.

Dendrites

Branch-like structures attached to neurons that help in receiving messages from other neurons.