Which of the following descriptions of employee share ownership plans is/are CORRECT?
A) Some firms provide employees with share options, which give the option holder the right to buy stock at a future date at a fixed price.
B) Share option plans provide employees with an incentive to work hard to raise the firm's stock price, so that they can purchase it at a discount in the future.
C) While share options are most common in senior executive compensation packages, its use is spreading to include lower level employees.
D) All of the options listed
E) None of the options listed

Question

Quizplus · Accepted Answer

All the statements provided are correct descriptions of employee share ownership plans. A) describes the mechanism of share options, B) explains the incentive effect of share options on employee performance, and C) notes the broadening use of share options across different levels of employees.

Which of the Following Descriptions of Employee Share Ownership Plans