which of the following statements about managerial ownership of stock options and corporate governance is true?
1) stock options increase in value when stock return volatility increases hence ownership of stock options could incentive the manager to increase firm risk.
2) stock options can be too sensitive to changes in stock price; this could increase the incentive for the manager to engage in fraud simply to try and boost the stock price in the short term.
3) stock options are arguably better tool because they are more sensitive to changes in stock price; hence giving the manager a smaller number of dollar-worth of stock options have the same effect as a gift of a larger dollar amount of shares.
which of the following statements about managerial ownership of stock options and corporate governance is true?
about amazon Discuss the corporate governance (internal) mechanisms of the firm: Ownership concentration Board of directors Compensation
what is the value of stocks and stock options given to managers in terms of corporate governance?
Identify which of the following statements are true for the corporate form of organization. 1. Ownership rights cannot be easily transferred. 2. Owners have unlimited liability for corporate debts. 3. Capital is more easily accumulated than with most other forms of organization. 4. Corporate income that is distributed to shareholders is usually taxed twice. 5. It is a separate legal entity. 6. It has a limited life. 7. Owners are not agents of the corporation.
Which of the following statements is not true about managerial accounting?It is highly aggregated.It is primarily for internal users such as officers and managers.It does not require an audit by a CPA.Reports are generated as needed.
Which of the following statements is true about managerial accounting?It pertains to a business as a whole.It provides more detailed information than financial accounting does.It must be prepared using generally accepting accounting principles.It is primarily for internal users such as stockholders and managers.
Which of the following statements is NOT TRUE? Question 3 options: Double taxation of income is a disadvantage of the corporate form of business organization. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. Corporations are assumed to have perpetual lives and partnerships have limited lives. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to...
Which of the following statements is NOT TRUE? Question 13 options: Double taxation of income is a disadvantage of the corporate form of business organization. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to another. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. Corporations are assumed to have perpetual lives and partnerships have limited...
Which of the following statements is NOT TRUE? Question 38 options: Corporations are assumed to have perpetual lives and partnerships have limited lives. Shareholders have unlimited liability for the obligations of the corporation which represents an important legal risk that equity investors must consider. Double taxation of income is a disadvantage of the corporate form of business organization. Ownership in a corporation is represented by equity shares and this implies that ownership can readily be transferred from one person to...
Under Corporate Governance provisions, managers hold stock options in compensation plans. What might be the impact of such a provision on the manager's behavior
Which of the following statements is true about corporate raiders? a. They are government-funded organizations that help underperforming companies recover. b. They lack power to interfere with the top management decisions. c. They are underperforming corporations that have been acquired by other companies. d. They may purchase stock in a company to take over the business and run it more efficiently. e. They discourage companies from pursuing strategies that help maximize stockholder wealth.