When an Employee Leaves the Company Which of the Following

question 9

Multiple Choice

When an employee leaves the company which of the following is usually true?

• A) All outstanding employee stock options are forfeited
• B) Out-of the money employee stock options are forfeited
• C) All options which have vested are forfeited
• D) All options are retained

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, working to create wealth through investment or production.

Operating Cash Flows

Cash generated from a company's normal business operations, indicating its ability to generate revenue.

Total Opportunity Cost

The overall cost of choosing one option when the value of the best alternative option is considered.

Total Carrying Costs

The total expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.