Which of the Following Descriptions of Employee Share Ownership Plans

question 79

Multiple Choice

Which of the following descriptions of employee share ownership plans is/are CORRECT?

• A) Some firms provide employees with share options, which give the option holder the right to buy stock at a future date at a fixed price.
• B) Share option plans provide employees with an incentive to work hard to raise the firm's stock price, so that they can purchase it at a discount in the future.
• C) While share options are most common in senior executive compensation packages, its use is spreading to include lower level employees.
• D) All of the options listed
• E) None of the options listed

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Definitions:

Sale of Assets

The process of disposing of business assets, either tangible or intangible, in exchange for cash or other compensation.

Sheriff's Sale

A public auction of property repossessed by the government as a result of the owner's failure to comply with legal obligations, such as unpaid taxes or mortgage.

Capital Balances

The amount of money that owners have invested in a business, typically shown in the equity section of the balance sheet.

Ending

The final balance or the concluding part of a financial statement or period.