Suzie Is the Controller of the Price Rite Company

question 42

Multiple Choice

Suzie is the controller of The Price Rite Company.She has been granted the right to buy 1,000 shares of her employer's stock at $25 a share anytime within the next three years.Which one of the following has Suzie been granted?

• A)employee stock option
• B)company bonus option
• C)employee grant
• D)employee exercise option
• E)company benefits option

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Definitions:

Utility Function

A mathematical representation that shows the relationship between an individual’s consumption bundle and their level of satisfaction or utility.

Flood Insurance

A policy that covers property damage and loss caused by flooding.

Utility Function

A utility function represents a consumer's preference for a set of goods and services, showing satisfaction levels for different consumption bundles.

Stock Market

A public market for the trading of company stock and derivatives at an agreed price; it is a key component of the economy.