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:

Scarce Means

The limited resources available to meet unlimited wants and needs in an economy, necessitating choices and priorities.

Production

The process of creating goods and services.

Human Wants

The desires and needs of individuals or society that drive demand for products, services, and resources.

Opportunity Cost

The forgone benefit that would have been derived by an option not chosen.