With a ________, an Executive Receives Units Instead of Shares

question 4

Multiple Choice

With a ________, an executive receives units instead of shares of company stock. In the future, the executive receives cash equal to the appreciation of the units owned.

• A)nonqualified stock option
• B)premium priced option
• C)phantom stock plan
• D)restricted stock plan

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Definitions:

Allocation of Resources

The process of distributing available resources for various uses in an economy.

Leaky Bucket

A metaphor often used in economics to describe the inefficiencies or waste that can occur in the distribution or allocation of resources.

Utilitarian Argument

A perspective in ethics that emphasizes the greatest good for the greatest number of people as the criterion for determining right actions.

Equalize Incomes

Strategies or policies implemented to reduce income inequality among individuals or households.