Asked by Riley Lennon on Jun 01, 2024
Verified
Stock option plans:
A) give an employee the right to buy stock during a specified period of time or under other specified conditions.
B) are being considered too hazardous after the Enron collapse in 2002
C) are restricted to executives
D) are always based on individual performance
E) all of the above are true
Stock Option Plans
incentive schemes that give employees the option to purchase shares of their company's stock at a set price, typically as part of their compensation package.
Specified Conditions
Conditions that are defined or stated clearly and explicitly, often relating to specific parameters or requirements in a given context.
Enron Collapse
A major corporate scandal involving the bankruptcy of the Enron Corporation in 2001, which was marked by extensive fraud and corruption.
- Acquire knowledge about the array of remuneration systems in place across organizations.
Verified Answer
AT
Angel ToussaintJun 02, 2024
Final Answer :
A
Explanation :
Stock option plans give employees the right to buy stock during a specified period of time or under other specified conditions. The other options given are not true - B) Stock option plans are still common and legal after Enron, C) Stock option plans are not restricted to executives, and D) Stock option plans may be based on individual or company-wide performance.
Learning Objectives
- Acquire knowledge about the array of remuneration systems in place across organizations.