Maria,the Financial Officer at Boone & Borowitz,encourages the Human Resource

question 24

Multiple Choice

Maria,the financial officer at Boone & Borowitz,encourages the human resource manager to consider using stock options as incentive pay for all employees.The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash.Which of the following statements supports this concern?

• A) Stock options are not profitable to employees.
• B) Option owners must exercise the options,no matter what the market price.
• C) Employees may not purchase their employer's stock.
• D) Offering stock options discourages employees from thinking like owners.
• E) Stock prices in the market may fall below the exercise price of the options.

---

Definitions:

Economic Context

The circumstances or environment in which economic activities occur, which can include factors like market conditions, economic policies, and the overall state of the economy.

Cluster

A collection of similar objects or individuals that are located or happen in close proximity.

Grapevines

A term often used to describe informal communication channels within an organization, allowing information to spread rapidly among employees in an unofficial manner.

Cluster

A group of similar things or people positioned or occurring closely together.