Q$7$ Which of these statements regarding stock appreciation rights $($SARs$)$ are CORRECT?

I. The executive to whom they are granted does not need to have cash available to exercise the stock appreciation rights $($SARs$).$

II$.$ They are similar to phantom stock, except that with SARs, the employee can choose when to exercise the right to share in the appreciation of the closely held company's stock.

III. Like phantom stock, they require cash to create and dilute ownership.

IV$.$ They are used heavily by closely held businesses.

a$.$ II$,$ III, and IV$.$

b$.$ II and IV$.$

c$.$ I and III.

d$.$ I, II$,$ and IV$.$