Which of the Following Is True About Broad-Based Option Plans

question 28

Multiple Choice

Which of the following is true about broad-based option plans?

• A)They are unable to inspire commitment and retention.
• B)They maximize distinctions between employee groups.
• C)They are capable of reinforcing either performance or a sense of ownership.
• D)They have only short-term effects on employee performance.
• E)They are applicable only to senior executives.

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Definitions:

Increased Efficiency

Enhancements in productivity and performance, often achieved through improved processes or technologies, leading to reduced costs and increased outputs.

Cash Flow

The total amount of money being transferred into and out of a business, especially considered when assessing liquidity and financial stability.

Operating Activities

The day-to-day actions that are involved in running a business, typically involving production, sales, and delivery of a company's product or service.

Dividends Per Share

The amount of dividend a company pays out to each shareholder for each share they own, typically expressed on an annual basis.