Who Purchases the Company in an Employee Stock Option Plan

question 16

Multiple Choice

Who purchases the company in an employee stock option plan?

• A) private shareholders
• B) a legal entity composed of employees
• C) the employees
• D) a bank trust fund

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility in groups, often leading to unprecedented behaviors.

Primary Groups

Primary groups are small social groups whose relationships are personal, close, and enduring, such as families or close friend groups, and are fundamental in shaping social identity and socialization.

Secondary Groups

Large, impersonal social groups in which interactions are based on specific functions or roles, such as coworkers or members of an organization, rather than personal connections.

Triads

A sociological term that refers to a group of three individuals in social situations, noted for the complexity and stability dynamics different from dyads (groups of two).