Stock Options

question 73

Multiple Choice

Stock options:

• A)do not lose value even if the stock price ends up lower.
• B)are nonmonetary forms of compensation.
• C)give the owner the right to buy shares of stock at a future date at a fixed price.
• D)provide one-time or lump-sum payments to employees who meet specific performance targets.
• E)offer workers to purchase stock in their employing companies whenever they chose to.

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Definitions:

Acceptance Sampling

A statistical quality control method that determines whether to accept or reject a batch of products based on sampling a few units from the batch.

Lower Specification Limit

The minimum acceptable limit for a characteristic or parameter of a product, below which the product is considered defective or unacceptable for use.

Measures Of Capability

Statistical techniques used to assess the ability of a process to meet specified performance standards.

Process Control System

An integrated system of technologies and practices used to manage and regulate industrial processes to maintain consistency and quality.