Corporations by Rewarding Executives with Large Option Positions

question 9

Multiple Choice

Corporations by rewarding executives with large option positions:

• A) cause the executives to hold highly undiversified portfolios.
• B) put the firm in a risky position to pay off the options.
• C) cause the value of the stock to fall because the options are theft.
• D) are really valueless because most options are never exercised.

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Definitions:

Bills of Lading

Official documents issued by a carrier to acknowledge the receipt of cargo for shipment.

Accession

A method of acquiring property rights by adding value to personal property through labor or new materials.

Speakers

Devices designed to produce audio output from an electronic device.

Fixture

An item of personal property that becomes real property when attached in a permanent manner to real estate.