Which of the Following Is a Disadvantage Associated with Stock

question 106

Multiple Choice

Which of the following is a disadvantage associated with stock options?

• A) They may increase risk taking.
• B) They motivate executives to act like owners.
• C) They align incentives with shareholder interests.
• D) They encourage executives to create stock value.

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Definitions:

Controlled Experiment

A method of collecting data that can determine whether something actually causes something else.

Sociological Research

The systematic study of society and social behavior by examining groups, cultures, organizations, social institutions, and processes that people develop and interact with.

Sampling

The process of selecting a subset of individuals from a population to represent the whole in research, allowing for the study of large groups without needing to gather data from everyone.

Generalize

The process of making broad statements or conclusions that apply beyond the original specific observations or study context.