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The prevalence of stock options in executive pay packages: Multiple Choice 1. eliminates managers incentives to engage in short-term earnings management. 2. is frowned upon

The prevalence of stock options in executive pay packages:

Multiple Choice

1. eliminates managers incentives to engage in short-term earnings management. 2. is frowned upon by the SEC. 3. may actually contribute to, rather than moderate, managers short-term focus. 4. has been widely cited as the main cause of the financial system meltdown that occurred in 2008.

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