Stock Options

question 133

Multiple Choice

Stock options:

• A) do not lose value even if the stock price ends up lower.
• B) are nonmonetary forms of compensation.
• C) give an owner the right to buy shares of stock at a future date at a fixed price.
• D) provide one-time or lump-sum payments to employees who meet specific performance targets.
• E) offer workers to purchase stock in their employing companies whenever they chose to.

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Definitions:

Supplies

Supplies are consumable items used in the everyday operations of a business, such as office materials, that are not resold to customers.

Open Account

a method of credit where the seller ships goods or provides services to a buyer under an agreement to bill them later or on a recurring basis.

Assets

Resources owned by a business, expected to bring future economic benefits.