Which Is TRUE Regarding Stock Option Plans

question 63

Multiple Choice

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.

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Definitions:

Brand Extension

The process of broadening the use of an organization’s current brand to include new products.

Broadening Use

Expanding the scope or application of a product, service, or technology to new areas or purposes.

New Products

Items or services introduced to the market offering novel features or benefits not previously available.

Brand Revitalization

The strategy of reviving a declining brand through various means such as rebranding, innovation, or marketing to increase its market share and relevance.