Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A)Increasing the pay-for-performance sensitivity comes with the added benefit of reducing manager's risk.
• B)Stock and option grants give managers a direct incentive to increase the stock price to make their stock or options as valuable as possible.
• C)By tying compensation to performance,the shareholders effectively give the manager an ownership stake in the firm.
• D)During the 1990s,most companies adopted compensation policies that more directly gave managers an ownership stake by including grants of stock or stock options to executives.

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Definitions:

Relational De-Escalation

The process of reducing the intensity or seriousness of a relationship.

Standard Reply

A routine or expected response to a common question or situation.

Post-Separation

The period or condition following the end of a relationship or partnership.

Language Code

A set of rules or symbols used for communication through writing, speaking, or other means.