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.
A
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List and describe the three types of consumer buying situations
What will be an ideal response?
A manufacturer with significant market power should use
A) two-part tariffs and volume discounts to achieve coordination. B) lot-size-based quantity discounts to achieve coordination. C) forward-buying with retail coupons to achieve coordination. D) liquidators and reverse-buying to achieve coordination.