How Do Employee Stock Option Plans Differ from Stock Option

question 5

Multiple Choice

How do employee stock option plans differ from stock option plans?

• A) They are exclusive to 401k plans.
• B) They are more inclusive but less profitable for employees.
• C) They are automatic for all employees over 21 years of age.
• D) They typically involve the use of phantom stock.

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Definitions:

Federal Budget Deficit

The financial situation in which the federal government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or debt accumulation.

Fiscal Policy

Policies implemented by the government that involve taxation and expenditure to affect economic activities.

Chronic Deficits

entail persistent and extended periods where expenses exceed revenue, leading to sustained budget shortfalls.

Aggregate Demand

Aggregate demand represents the total demand for goods and services in an economy at a given overall price level and in a given time period.