Which Group Incentive Ultimately Allows at Least Part of the Stock

question 89

Multiple Choice

Which group incentive ultimately allows at least part of the stock in the company to be given to employees over a period of time based on some formula?

• A)Employee stock ownership plan
• B)Stock options plan
• C)Employee stock provision plan
• D)Stock purchasing plan
• E)An executive level retirement plan

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Definitions:

Bonus Pay

A pay plan that rewards employees for recent performance rather than historical performance.

Extrinsic Reward

A reward or incentive provided by an external source, such as money, grades, or recognition, to motivate behavior or performance.

Profit Sharing

A company policy of distributing a portion of its net profits to its employees, typically as a motivational tool and a means of fostering a sense of ownership and loyalty.

Start-up Costs

The initial expenses required to start a new business, including costs for legal fees, equipment, inventory, and marketing.