Which of the following statements is CORRECTregarding stock option plans?
A)They are offered only to top-level executives and members of the board of directors.
B)If the stock price increases,employees are likely to exercise their option to purchase the stock.
C)The company holds the stock for the benefit of the employees.
D)Stock options are provided as a retirement benefit.

Question

Quizplus · Accepted Answer

Stock option plans may be offered to employees at all levels, but if the stock price increases, employees are more likely to exercise their option to purchase the stock. The company does not hold the stock for the benefit of the employees, but rather the employees hold the stock if they choose to exercise their option. Stock options are not typically provided as a retirement benefit.

Which of the Following Statements Is CORRECTregarding Stock Option Plans