What Is the Difference Between Stock Options and an Employee

question 41

Multiple Choice

What is the difference between stock options and an employee stock ownership plan (ESOP) ?

• A) Stock options carry significant risk, whereas ESOPs are risk-free.
• B) Stock options are usually granted to company executives, whereas ESOPs are provided to all employees.
• C) In stock options, stocks are placed into a trust, whereas ESOPs give employees the right to buy a certain number of shares of stock.
• D) Under stock options, employees can sell their stocks, whereas ESOPs do not allow employees to sell their stocks.
• E) Earnings from stock options are exempt from income taxes, whereas earnings from ESOPs are taxable.

Develop strategies for presenting bad news in a manner that maintains goodwill.

Identify the appropriate structure and components of a negative announcement.

Understand the importance of considering the audience’s perspective when conveying bad news.

Learn how to justify the negative news effectively to the reader.

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Definitions:

Observational Learning

Learning that occurs through observing the behavior and outcomes of others, a fundamental component of social learning theory.

Albert Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Swing

A type of seat suspended from a structure or mechanism, designed for an individual to sit and move back and forth, or a musical genre characterized by a strong rhythm suitable for dancing.

Baseballs

Hard balls used in the game of baseball, made of cork, rubber, and wrapped in leather, designed for hitting, pitching, and catching in the sport.