Which of the following allows employees to share ownership in the firm by offering them the right to buy a specified amount of a company stock at a given price within a given time period?

Question

Quizplus · Accepted Answer

Stock options allow employees to purchase a specified amount of company stock at a predetermined price within a specified time frame. This provides employees with the opportunity to benefit from the company's success and to share in its ownership. Employee stock ownership plans (B) also allow employees to own a stake in the company, but they typically involve the company contributing stock to a trust on behalf of employees rather than allowing employees to purchase stock directly. Derivatives (A) and RRSP plans (C) do not typically involve employees sharing in ownership of the company.

Which of the Following Allows Employees to Share Ownership in the Firm