Which Two of the Following Are the Key Reasons Why

question 40

Multiple Choice

Which two of the following are the key reasons why most major corporations issue employee stock options?
I. provide an employee benefit in place of a retirement plan
II. no immediate cost to the corporation
III. align management and shareholder interests
IV. replace employer-provided insurance benefits

• A)I and II only
• B)I and III only
• C)II and III only
• D)II and IV only
• E)III and IV only

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Definitions:

Slope

The measure of the steepness or incline of a line, representing the ratio of the vertical change to the horizontal change.

Production Function

Describes the relationship between inputs used in production and the resulting output, showing how factors like labor and capital are transformed into goods or services.

Output

The quantity of products or services that a business, sector, or economic system generates.

Inputs

The resources used in the production of goods and services, such as labor, raw materials, and capital.