Suzie Is the Controller of the Price Rite Company

question 28

Multiple Choice

Suzie is the controller of The Price Rite Company. She has been granted the right to buy 1,000 shares of her employer's stock at $25 a share anytime within the next three years. Which one of the following has Suzie been granted?

• A) Employee stock options
• B) Company bonus options
• C) Employee grants
• D) Employee exercise options
• E) Company benefits options

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Definitions:

Total Variable Costs

The expenses that change in proportion to the activity of a business.

Drones

Unmanned aerial vehicles used for a variety of purposes including surveillance, delivery, agriculture, and photography.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease.

Average Total Cost

The total cost of production divided by the quantity of output produced.