Which of the following is true of employee stock options?
A) They are used in lieu of payment for entry-level employees.
B) They are used in lieu of payment for high-level managers.
C) They are used to motivate employees to achieve organizational goals.
D) They are used to attract customers from different market segments.
E) They are used to decrease the value of stock options.

Question

Quizplus · Accepted Answer

Employee stock options are financial instruments that entitle the bearer to buy shares of an organization's stock at a certain price during a certain period or under certain conditions. From a motivation standpoint, stock options are used not so much to reward past individual performance but, rather, to motivate employees to work in the future for the good of the company as a whole.

Which of the Following Is True of Employee Stock Options