Which of the Following Statements Related to Employee Stock Options

question 20

Multiple Choice

Which of the following statements related to employee stock options (ESO) are generally correct?
I. ESO vesting encourages long-term employment.
II. Most ESOs are issued at the money.
III. ESOs cannot be resold.
IV. ESOs that are in the money are frequently repriced.

• A)I and II only
• B)I and IV only
• C)II and III only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Extraneous Variables

Variables other than the independent variable that may affect the outcome of an experiment, potentially leading to inaccurate results if not controlled.

Confounding

A situation in statistical analysis where the effect of one variable on another is distorted by a third variable.

Confounded

A situation in research where the effect of one variable cannot be separated from the effect of another, affecting the validity of conclusions.

Packaging Information

Refers to the details and data provided on the packaging of products, highlighting content, usage, and safety information.