Which of the Following Compensation Plans Gives Employees the Right

question 41

Multiple Choice

Which of the following compensation plans gives employees the right to purchase shares at a fixed price in the future?

• A) Stock options
• B) Profit sharing
• C) Bonus pay
• D) Merit pay

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Definitions:

Excludable

A characteristic of a good or service that means it can be restricted to only those who pay for it; the opposite of a public or non-excludable good.

Rival in Consumption

A characteristic of goods where one individual's consumption prevents or decreases others' ability to consume the same good.

Corrective Tax

A tax designed to correct market outcomes by accounting for externalities, encouraging more efficient allocation of resources.

Variable Toll

A pricing strategy that adjusts toll amounts based on current traffic conditions, often used to manage congestion on roads.