__________ give an employee the right to buy shares of the company's stock at a certain price.
A) Long-term incentives
B) Short-term incentives
C) Profit sharing plans
D) Stock options

Question

Quizplus · Accepted Answer

Stock options give employees the right to buy shares of the company's stock at a certain price, usually lower than the current market price. This provides an incentive for employees to work hard and contribute to the company's success, as they can potentially profit from the increase in the stock price. Long-term incentives may include stock options, but not all long-term incentives necessarily involve company stock. Short-term incentives typically provide immediate rewards for achieving specific goals, but do not involve stock options. Profit sharing plans distribute a portion of the company's profits to employees, but do not involve the right to buy company stock.

__________ Give an Employee the Right to Buy Shares of the Company's