The use of stock options as a means of compensation:
a. legally can be provided only to top executives and members of the board of directors
b. is declining in popularity since options reduce the firm's profits
c. is opposed by labor unions, since options are available only to nonunion employees
d. may tempt managers to manipulate financial statements to boost stock prices
e. has allowed workers in many firms to control who serves on the board of directors of their firm
Answer: d. may tempt managers to manipulate financial statements to boost stock prices
You might also like to view...
Which type of word represents things that can be seen or touch?
A) Precise B) Concrete C) Connotative D) Abstract E) Denotative
Which of the following is not a threat to the revenue cycle sales order entry process?
A) incomplete orders B) invalid orders C) cash flow problems D) uncollectible accounts