Broad-Based Stock Option Plans Are Intended to ________

question 91

Multiple Choice

Broad-based stock option plans are intended to ________.

• A) motivate all employees at a firm
• B) encourage management retention
• C) monitor the decisions of executives
• D) distribute earnings to boards of directors

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Definitions:

Stated Value

A value assigned to no-par stock by the company's board of directors.

No-Par Value

Refers to shares of stock that have not been assigned a specific par value by the issuing company.

No-Par Value

Refers to shares of stock issued without a specified face value, unlike par value stock which has a legal capital amount assigned per share.

Noncumulative Preferred Stockholders

Preferred stockholders whose dividends do not accumulate if not declared in a given period, missing dividends are not required to be paid in the future.