These Rights Provide Employees with an Opportunity to Purchase Stock

question 24

Multiple Choice

These rights provide employees with an opportunity to purchase stock shares at a designated price or whenever the stock price increases,usually,within a specified period of time.

• A)stock option
• B)stock grant
• C)disposition
• D)exercise of one's grant

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Definitions:

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Diseconomies of Scale

The situation in which the cost of producing each individual unit rises when a company's production volume grows, often resulting from inefficiencies and a rise in complexity.