Final answer:
The statement that correctly describes management compensation options is that stock options are a common form of such compensation, aligning management interests with shareholder value.
Step-by-step explanation:
The correct statement that describes management compensation options is B. Stock options are a common form of management compensation. This is because managers often receive a combination of fixed salaries and performance-based incentives. Fixed salaries provide a base income, while performance-based incentives such as bonuses, stock options, and other forms of variable compensation serve to align the interests of the managers with those of the shareholders. Stock options give managers the right, but not the obligation, to buy shares of the company at a predetermined price, potentially benefiting them if the company's stock price rises.