Which of the Following Is True of Most General Stock

question 4

Multiple Choice

Which of the following is true of most general stock compensation plans?

• A)The company stock shares represent equity segments of equal value.
• B)Employees own the stock upon purchase.
• C)Company stock represents partial equity in the company.
• D)Stock options refer to what an employee can do with the stock once they purchase it.

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Definitions:

Final Distribution

The process of allocating the remaining assets of a company, estate, or trust to the rightful beneficiaries or owners after all obligations have been met.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Book Value

The value of a company or asset according to its financial statements, calculated by taking the total assets minus the liabilities and intangible assets.

Mortgage Payable

A liability account on the balance sheet representing the amount owed to a lender for property purchased.