Which of the Following Statements About Stock-Based Managerial Compensation Is

question 30

Multiple Choice

Which of the following statements about stock-based managerial compensation is correct?

• A) It may cause dysfunctional behavior in the short-run as managers try to drive up the company's stock price.
• B) Exercising the option as soon as it is granted will leave the manager better off from a cash standpoint.
• C) Stock options are always guaranteed to increase in value over time.
• D) Managers always prefer to receive stock options instead of year-end bonuses.

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Definitions:

Proximal Outcomes

Immediate effects or results that can be directly attributed to specific actions or interventions.

Distal Outcomes

Results or consequences that occur over a long period of time or are removed from the immediate cause-and-effect relationship.

Coping Techniques

Strategies or methods used by individuals to manage stress, adversity, or emotional distress.

Workplace Stressors

Factors or conditions in the workplace that contribute to stress, such as workload, lack of control, and interpersonal conflicts.