Which two of the following are the key reasons why most major corporations issue employee stock options?
I. provide an employee benefit in place of a retirement plan
II. no immediate cost to the corporation
III. align management and shareholder interests
IV. replace employer-provided insurance benefits
A)I and II only
B)I and III only
C)II and III only
D)II and IV only
E)III and IV only

Question

Quizplus · Accepted Answer

The key reasons why most major corporations issue employee stock options are to align management and shareholder interests (III) and because there is no immediate cost to the corporation (II). Employee stock options are not issued as a replacement for retirement plans or employer-provided insurance benefits (I and IV).

Which Two of the Following Are the Key Reasons Why