Which of the Following Is True About Stock Option Plans

question 86

Multiple Choice

Which of the following is true about stock option plans?

• A)They refer to bonuses from the work unit's cost savings and productivity improvement.
• B)They give employees the right to purchase company stock at a predetermined price up to a fixed expiration date.
• C)They directly award bonuses to employees based on cost savings and increased labor productivity.
• D)They tend to weaken employee commitment to the organization.
• E)They encourage employees to buy company stock, usually at a discounted price or through a no-interest loan.

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Definitions:

Avoiding

The act of keeping away from or not doing something, often used in the context of behaviors or situations.

General Adaptation Syndrome

A theoretical framework describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Metabolic Changes

Adjustments or alterations in the body's processes that involve the breakdown and conversion of nutrients into energy and other components essential for cell and organ function.

Glycogen

A form of glucose stored in the liver and muscles, serving as a primary energy reserve in animals and humans.