In the debate regarding whether stock options should be an expense, which of the following was not a reason supporting such an expense?
A. Expensing stock options would yield more accurate earnings measurement and restore investor confidence.
B. Expensing stock options would reduce the incentive managers have to pump-up short term earnings for market price gains.
C. Expensing stock options would spur risk-taking and entrepreneurship that are crucial to innovation.
D. Expensing stock options would reduce the dilution effect caused by the issuance of excessive grants to top executives.
Answer: C
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