Stock Options as a Form of Payment Are Designed to

question 149

Multiple Choice

Stock options as a form of payment are designed to

• A) evade the equal-pay-for-equal-work provisions of the federal antidiscrimination law.
• B) boost the overall earnings of minimum-wage workers.
• C) offset monopsony.
• D) address the principal-agent problem.

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Definitions:

Selling Price

The price at which an item or service is sold to a buyer, potentially including taxes, shipping, and other fees.

Overhead Costs

Expenses associated with running a business that are not directly tied to the production of goods or services, such as rent, utilities, and administrative costs.

Profit

The financial gain achieved when the amount of revenue gained exceeds the expenses, costs, and taxes needed to sustain the activity.

Markdown

A reduction in the selling price of goods or services, often to clear old stock or to beat competitors.