Which of the Following Statements About Stock Options Is Not

Multiple Choice

Which of the following statements about stock options is not correct?

A) Stock options are intended to give upper management the same goals as stockholders.
B) When stock options are exercised by upper management,existing stockholders lose voting power.
C) Stock options may create an incentive for upper management to overstate net income.
D) An expense is reported by the company when stock options are exercised.