Which of the following types of incentives encourages an employee to think as both investor and employee?
A)Profit-sharing plans
B)Awards
C)Cash bonuses
D)Stock option programs

Question

Quizplus · Accepted Answer

Stock option programs give employees the opportunity to purchase company stock at a discounted price, which encourages them to think as both investors and employees. As shareholders, they will have a vested interest in the company's success and will work harder to increase its value. Additionally, because stock options only have value if the company's stock price increases, employees are incentivized to work towards improving the company's financial performance.

Which of the Following Types of Incentives Encourages an Employee