Organizations Use Stock Related Incentive Plans in Order To

question 45

Multiple Choice

Organizations use stock related incentive plans in order to:

• A) provide a set level of income to employees.
• B) encourage employees to think like owners.
• C) eliminate free riders.
• D) make employees feel more in control of their overall compensation.
• E) diversify employee retirement plans.

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Definitions:

Market Rate

The current market rate for interest on investments or loans available in the marketplace.

Annual Dividend

The annual dividend income a shareholder is awarded from a company.

Quarterly Dividend

A dividend payment made to shareholders four times a year, typically every three months.

Current Close

The most recent closing price of a stock or other security.