Asked by Abdullah Ghzzai Ghazi Albeladi on Jul 13, 2024
Verified
Which is TRUE regarding stock option plans?
A) They are offered only to top-level executives and members of the board of directors.
B) Employees are likely to exercise their option to purchase the stock,if the stock price increases.
C) The company holds the stock for the benefit of the employees.
D) Stock options are provided as a retirement benefit.
Stock Options
Rights to buy a specified amount of company stock at a given price within a given time period.
Top-level Executives
Senior personnel in a company who are responsible for making major corporate decisions, shaping policies, and setting strategic goals.
Retirement Benefit
These are the financial supports or compensations, such as pensions or health insurances, provided to employees after they retire from service.
- Understand the role of employee stock ownership plans (ESOPs) and stock options as part of employee compensation.
Verified Answer
Learning Objectives
- Understand the role of employee stock ownership plans (ESOPs) and stock options as part of employee compensation.
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