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Problem with Tying Executive Pay to Stock Prices Isthat

Question 199

Multiple Choice

problem with tying executive pay to stock prices isthat:


A) many factors other than executive effort and ability affect stock prices.
B) executives can manipulate stock prices.
C) it is a complicated evaluation to make, riddled with strong assumptions.
D) executives prefer more straightforward compensation schemes that reduce their risk.

Correct Answer:

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