Which of the Following Strategies Makes No Sense

question 12

Multiple Choice

Which of the following strategies makes no sense?

• A) An employee exercises stock options early and sells the stock. No dividends are expected
• B) An employee exercises stock options early and keeps the stock. No dividends are expected
• C) An employee exercises stock options early and sells the stock. Dividends are expected
• D) An employee exercises stock options early and keeps the stock. Dividends are expected.

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Definitions:

Overhead

The ongoing administrative, general, and maintenance expenses incurred during the production process, not including direct labor or materials costs.

Profit Centers

Parts of an organization that are responsible for generating revenue and evaluated based on their profitability.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Average Total Assets

A financial metric that represents the average value of all the assets owned by a company over a specific time period.