Which of the Following Statements Is CORRECTregarding Stock Option Plans

question 12

Multiple Choice

Which of the following statements is CORRECTregarding stock option plans?

• A)They are offered only to top-level executives and members of the board of directors.
• B)If the stock price increases,employees are likely to exercise their option to purchase the stock.
• C)The company holds the stock for the benefit of the employees.
• D)Stock options are provided as a retirement benefit.

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Definitions:

Freight Costs

Costs a company bears to move merchandise from one location to another.

Purchased Merchandise

Goods acquired by a business for the purpose of reselling them to final consumers.

Discount Period

A set time frame during which a discount is offered on payments made for goods or services.

Accounts Receivable

Due payments from customers to a firm for products or services that have been delivered but not settled.