A(n)_____ Plan Gives Employees the Opportunity to Buy the Company's

question 28

Multiple Choice

A(n) _____ plan gives employees the opportunity to buy the company's shares at a previously fixed price.

• A)mutual fund
• B)gainsharing
• C)group incentive
• D)profit sharing
• E)stock option

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Definitions:

Retained Earnings

The portion of net income that is kept by a company instead of being paid out as dividends to shareholders, contributing to the company's equity.

Paid-in Capital

The amount of money that a company receives from its shareholders in exchange for shares of stock.

Declaration Date

The date on which a company's board of directors announces its intention to pay a dividend.

Incorporation Date

The date on which a company was legally registered or incorporated and started its existence as a corporate entity.