Employee Stock Options

question 9

Multiple Choice

Employee stock options:

• A) usually have a positive intrinsic value when issued.
• B) must be backdated at least six months to comply with Sarbanes-Oxley.
• C) are generally "underwater" when issued.
• D) are frequently repriced if the options are in-the-money.
• E) are generally issued with a zero intrinsic value.

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Definitions:

Healthy Social Change

Positive transformation within society that leads to improvements in health, well-being, equity, and social justice.

Durkheim

Refers to Émile Durkheim, a French sociologist, who is a founding figure in the field of sociology and is best known for his theory on social facts and his studies on the division of labor, suicide, and religion.

Tolerance

The willingness to accept feelings, habits, or beliefs that are different from one's own; openness to diversity.

Labeling Theory

Holds that deviance results not so much from the actions of the deviant as from the response of others, who label the rule breaker a deviant.