Share option plans:
A)are illegal in Canada.
B)give employees the right to purchase company shares at a future date at a predetermined price.
C)directly award bonuses to employees based on cost savings and increased labour productivity.
D)tend to weaken employee commitment to the organization.
E)give employees the right to purchase company shares at a future date at a predetermined price and tend to weaken employee commitment to the organization

Question

Quizplus · Accepted Answer

Share option plans give employees the right to purchase company shares at a future date at a predetermined price, which can be a way to incentivize and retain employees. Option plans are legal in Canada, so option choices A and C are incorrect. Option D is not necessarily true, as share option plans can actually increase employee commitment by giving them a vested interest in the company's success. Option E combines the correct answer with an incorrect statement, so it is not the best choice.

Share Option Plans