Why Do Employers Use Checks as an Employment Payment Method

question 2

Multiple Choice

Why do employers use checks as an employment payment method?

• A) Paying employees by check requires the employer to keep currency on the premises.
• B) Paying employees by check offers a level of security of employee payments.
• C) Paying employees by check allows the employer flexibility with its bank accounts.
• D) Paying employees by check increases the complexity of the payroll process.

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Definitions:

Out-of-the-Money

Describes an option that would not result in a profit if exercised immediately because its strike price is less favorable compared to the market price of the underlying asset.

Exercise Price

The specified price at which the holder of an option contract can buy (for a call option) or sell (for a put option) the underlying asset.

Stock Price

The cost of purchasing a share of a company's stock.

Intrinsic Value

The actual, fundamental value of an asset, independent of its market value, often calculated through financial analysis.