Which of the Following Increases the Expected Life of Employee

question 14

Multiple Choice

Which of the following increases the expected life of employee stock options?

• A) An increase in the vesting period
• B) An increase in employee turnover
• C) A fast growth rate for the stock price
• D) A tendency for employees to exercise earlier than in the past

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Definitions:

Hypercompetition

An environment characterized by intense and rapid competitive moves, where advantages are quickly eroded.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition.

Monopoly

A market structure characterized by a single seller dominating the entire market for a particular good or service.