An Employee Stock Option Plan Is

question 60

Multiple Choice

An employee stock option plan is

• A) a perk usually only given to the board of directors as compensation.
• B) a plan that only partnerships can use to defer compensation to partners.
• C) a way to align the interests of employees with those of the owners.

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Definitions:

Perpetual Inventory Systems

Inventory accounting method that continuously tracks inventory levels and updates accounting records for each purchase and sale.

Inventory Records

Inventory records are detailed lists or databases that track the quantities, locations, and statuses of products or materials that a company holds in stock.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

Gross Profit

A company's revenue minus its cost of goods sold, indicating the efficiency of a company in managing its production and labor costs.