In 2014,a Company Employee Received an Option to Purchase the Company's

question 92

Multiple Choice

In 2014,a company employee received an option to purchase the company's stock at $45 per share.If the stock is trading at $40 a share in 2016,the employee will most likely:

• A) exercise the option, receiving a gain of $5.
• B) exercise the option, receiving a gain of $40.
• C) not bother to exercise the options.
• D) buy the stock at $45 per share.
• E) sell the shares to a third party slightly above the market price.

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Definitions:

Organizational Culture

The set of shared values, beliefs, standards, and behaviors that characterize the members of an organization and define its nature.

Compensation Costs

The total amount of expenses incurred by an employer to pay its employees, including wages, benefits, and taxes.

Outbreeding

The practice of breeding animals or plants that are unrelated to increase genetic diversity, which can lead to healthier offspring.

Search Firms

Organizations specialized in recruiting candidates for specific positions, especially for higher-level or specialized jobs.