Employee Stock Options Are Primarily Designed to Do Which One

question 15

Multiple Choice

Employee stock options are primarily designed to do which one of the following?

• A)provide employees with put options on their shares of company stock
• B)provide an immediately vested benefit to key employees
• C)influence the actions and priorities of employees
• D)distribute excess cash to key employees to avoid corporate taxation
• E)provide an immediate capital gain to certain employees

---

Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically marked by the absence of involuntary unemployment.

Keynesian Model

An economic theory proposed by John Maynard Keynes, suggesting that aggregate demand is the primary driving force in the economy, and advocating for government intervention to manage economic fluctuations.

Classical Theory

An economic theory that emphasizes the importance of free markets, competition, and the belief that markets, through the forces of supply and demand, will naturally regulate the economy.

Employment

The condition of having a paid job; the total number of people currently employed in the economy.