Which of the Following Statements About Stock Option Plans Is

question 93

Multiple Choice

Which of the following statements about stock option plans is false?

• A)Offering stock options to a company's managers reduces the likelihood they will not always act in the best interest of the investors.
• B)Stock option plans are often a major part of an executive's compensation plan.
• C)Stock options usually have a grant price equal to the market price of the share when the options are first offered to the executives.
• D)The holder of a stock option has an interest in a company's performance but not in the same manner as a shareholder.

---

Definitions:

Tax Revenue

The revenue collected by governments from taxes.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Excess Burden

The cost to society created by market inefficiency, particularly through taxation or other government policies, beyond the immediate financial effects.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and infrastructure.