Which of the Following Statements Is FALSE

question 26

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.

---

Definitions:

Brachial

Pertaining to the arm, specifically the area of the upper arm close to the shoulder.

Femoral

Relating to the femur or thigh, the largest and strongest bone in the human body.

Common Iliac

Referring to the two large arteries that originate from the abdominal aorta and supply blood to the pelvic region, lower abdominal wall, and legs.

Tibial

Relating to the tibia, which is the larger and stronger of the two bones in the lower leg, extending from the knee to the ankle.