Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)Backdating refers to the practice of choosing the grant date of a stock option retroactively,so that the date of the grant would coincide with a date when the stock price was at its low for the quarter or for the year.
• B)Unless it is reported in a timely manner to the IRS and to shareholders,and reflected in the firm's financial statements,backdating is illegal.
• C)The use of backdating suggests that some executive stock option compensation may not truly have been earned as the result of good future performance of the firm.
• D)By backdating the option the executive receives a stock option that is already out-of-the-money,with a strike price equal to the higher price on the supposed grant date.

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Definitions:

Time Series Forecasting Methods

Statistical techniques used to analyze time-ordered data points in order to predict future values based on past trends and patterns.

Qualitative Forecasting Methods

Forecasting techniques based on judgment and opinion, rather than mathematical models, often used when precise data is unavailable.

Causal Forecasting Methods

Techniques that predict future events based on identified relationships between dependent and independent variables, taking into account factors that cause variations in data.

Simulation Forecasting Methods

Techniques that use models to predict future outcomes based on varying inputs and scenarios, helping in decision-making processes.