In Compensation Plans,a Stock Option Is

question 97

Multiple Choice

In compensation plans,a stock option is:

• A)categorized as a long-term motivational device.
• B)usually reserved for employees who affect long-term results.
• C)most effective when the exercise price is more than the market price of the stock at issuance.
• D)All the above are correct.

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Definitions:

Movement Along

The change in quantity demanded or supplied of a good due to a change in its price, represented graphically by a movement along a demand or supply curve.

Slope

In mathematics and economics, the rate at which one variable changes over the change in another variable, often used in the context of supply and demand curves.

Ovals

Simple, elongated round shapes that can be geometric forms in design or natural formations.

Ratio

A quantitative relation between two amounts showing the number of times one value contains or is contained within the other.