Which of the following compensation plans gives employees the right to purchase shares at a fixed price in the future?
A) Stock options
B) Profit sharing
C) Bonus pay
D) Merit pay

Question

Quizplus · Accepted Answer

Stock options give employees the right to purchase shares at a fixed price in the future, typically at a price lower than the current market price. Profit sharing involves distributing a portion of the company's profits to employees, while bonus pay is a one-time payout typically based on performance. Merit pay is an increase in salary or wages based on an employee's job performance. Therefore, the best choice is A) Stock options.

Which of the Following Compensation Plans Gives Employees the Right