Which of the Following Is an Example of an Intrinsic

question 74

Multiple Choice

Which of the following is an example of an intrinsic reward?

• A) profit-sharing plan
• B) employee stock option
• C) gainsharing
• D) bonus
• E) employee recognition

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Definitions:

Market Return

The total return on an investment, including dividends and capital gains, as opposed to the annual return.

Supernormal Growth

A period in which a company or economy experiences growth rates significantly above the norm.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicative of the return on investment for shareholders.

Capital Gains Yield

The capital gain on a stock divided by the price at which it was purchased.