Which Statement Is True of Using Stock Options as Incentive

question 79

Multiple Choice

Which statement is true of using stock options as incentive pay?

• A) The use of stock options ensures that managers add value in terms of efficiency and customer satisfaction.
• B) Stock options require an option holder to purchase the organization's stocks at its present market rate.
• C) Stock options are rewarding for employees who exercise their option when the company's stock value has risen.
• D) Low-level employees with stock options are more likely to think like owners than executives who have stock options.
• E) A company's performance in the stock market tends to be significantly better if its low-level employees are provided stock options.

---

Definitions:

Tibialis Posterior

A muscle in the leg that supports the arch of the foot and aids in walking by controlling plantar flexion and inversion of the foot.

Fibularis Brevis

A muscle of the lower leg that contributes to the eversion and plantarflexion of the foot.

Extensor Hallucis Longus

A leg muscle that extends the big toe and aids in foot dorsiflexion and inversion.

Tibialis Anterior

A muscle in the lower leg that contributes to dorsiflexion and inversion of the foot.