Which of the following statements is true of the stock-purchase plans offered by a company?
A) It is offered only to the senior managers and the top executives of the company.
B) It is used more as a performance incentive than as a retention tool.
C) It is an individual incentive system.
D) It is applicable to employees only if they remain with the company for a specified period of time.

Question

Quizplus · Accepted Answer

Stock-purchase plans often have a vesting period, meaning employees need to stay with the company for a certain period before they can benefit from the plan. This makes it a retention tool, as it incentivizes employees to remain with the company to gain the full benefits of the stock options.

Which of the Following Statements Is True of the Stock-Purchase