Share options have their greatest motivational potential during periods of
A)high unemployment.
B)downturns in the economy.
C)high economic and company growth.
D)low inflation.

Question

Quizplus · Accepted Answer

Share options, which give employees the opportunity to buy company stock at a discounted price, have their greatest motivational potential during periods of high economic and company growth. This is because employees perceive a greater potential for the company's stock price to rise in such environments, which can create a stronger incentive to work harder and contribute to the company's success. During periods of high unemployment or downturns in the economy, employees may be more concerned with job security and financial stability, and share options may not hold as much motivational power. Low inflation also has little bearing on the motivational potential of share options.

Share Options Have Their Greatest Motivational Potential During Periods of