Which of the Following Descriptions of the Implications of Share

question 60

Multiple Choice

Which of the following descriptions of the implications of share options is/are TRUE?

• A) Share options are a risky form of incentive compensation for both organisations and employees.
• B) When the share market performs well, stocks options can be a highly motivating form of incentive pay.
• C) When the share market performs poorly, people may be disappointed with their incentive pay.
• D) All of the options listed
• E) None of the options listed

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Definitions:

Long-term Assets

Assets that are expected to provide economic benefits over periods longer than one year, such as buildings, machinery, and land.

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Financing Section

A segment of a business's cash flow statement that shows the net flows of cash used in funding the company, including debt, equity, and dividend payments.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, which affect the company's capital structure.