What Is the Difference Between Stock Options and an Employee

question 41

Multiple Choice

What is the difference between stock options and an employee stock ownership plan (ESOP) ?

• A) Stock options carry significant risk, whereas ESOPs are risk-free.
• B) Stock options are usually granted to company executives, whereas ESOPs are provided to all employees.
• C) In stock options, stocks are placed into a trust, whereas ESOPs give employees the right to buy a certain number of shares of stock.
• D) Under stock options, employees can sell their stocks, whereas ESOPs do not allow employees to sell their stocks.
• E) Earnings from stock options are exempt from income taxes, whereas earnings from ESOPs are taxable.

Explain the differences between intrinsic and extrinsic rewards and their role in motivation.

Distinguish between different motivation theories and their application to organizational behavior.

Understand the concept of job rotation and its requirements for implementation.

Comprehend the benefits and challenges of maintaining pay secrecy within organizations.

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Definitions:

Sediment

Particulate matter that accumulates in layers on the Earth's surface, deposited by water, wind, ice, or biological activity.

Esker

A long, winding ridge of stratified sand and gravel, deposited by meltwater from a retreating glacier or ice sheet.

Sediment

Particles of rock, minerals, or organic materials that have been transported and deposited by wind, water, or ice.

Arête

A narrow ridge of rock which is typically formed by the erosion of two glaciers from opposite sides.