Which of the following descriptions of the implications of share options is/are TRUE?
A) Share options are a risky form of incentive compensation for both organisations and employees.
B) When the share market performs well, stocks options can be a highly motivating form of incentive pay.
C) When the share market performs poorly, people may be disappointed with their incentive pay.
D) All of the options listed
E) None of the options listed

Question

Quizplus · Accepted Answer

All the statements A, B, and C correctly describe the implications of share options. Share options can indeed be risky for both organizations and employees (A), can be highly motivating when the share market performs well (B), and can lead to disappointment when the market performs poorly (C).

Which of the Following Descriptions of the Implications of Share