Which One of the Following Statements Regarding Employee Stock Options

question 27

Multiple Choice

Which one of the following statements regarding employee stock options (ESOs) is correct?

• A) ESOs grant an employee the right to buy a fixed number of shares of company stock at the market price.
• B) Employees must exercise their ESOs prior to those ESOs becoming vested.
• C) Employees may forfeit their ESOs if they terminate their employment with the issuing firm.
• D) If a firm issues ESOs it must make them available to all employees.
• E) Employees can sell their ESOs if they do not want to personally exercise them.

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Definitions:

Participative Leadership

A leadership style in which the leader involves team members in the decision-making process, ensuring that their input is considered.

Consensus

A general agreement or the collective opinion of a group, often achieved through discussion and consideration of all viewpoints.

Human Bias

Refers to the unconscious or conscious prejudices and preferences that affect decision-making and perception.

Legitimate Power

The authority a person holds as a result of their position or role within an organization, which is recognized and respected by others.