Question

A plan in which employees are given an option to buy shares at some future time at a specified price is known as a/an:

Select one:

a. Stock Option plan

b. Instalment plan

c. All of the given options

d. Fully paid share plan

Answer 1

Instalment plan is payment method generally allowed to customers where they can make payment for goods purchase on instalment and is not related to employee. Thus, option (b) is incorrect.

Fully paid share plan is not actually a plan but says that all the amount of shares issued are collected from shareholder and they are not liable for any payment. Thus, option (d) is incorrect.

Stock option plan is where employees are given option to purchase shares of the company at price lower than market price. It is kind of incentive given to employees. Thus, option (a) is correct