Which of the Following Statements Related to Employee Stock Options

question 20

Multiple Choice

Which of the following statements related to employee stock options (ESO) are generally correct?
I. ESO vesting encourages long-term employment.
II. Most ESOs are issued at the money.
III. ESOs cannot be resold.
IV. ESOs that are in the money are frequently repriced.

• A)I and II only
• B)I and IV only
• C)II and III only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Raw Materials Inventory

The stock of base materials used in the manufacturing process before being processed into finished goods.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management and sales performance.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Period

A length of time in financial reporting, often quarterly or annually, used to evaluate business performance.