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74. In 2003, a company employee received an option to purchase the company's stock at $45
per share. If the stock is trading at $40 a share in 2005, the employee will most likely:
75. Which of the following is an arrangement in which the organization distributes shares of
stock to all its employees by placing it in a trust?
76.
(p. 383)
What is meant by backdating a stock option?
77. What is the difference between stock options and employee stock ownership plan
(ESOP)?
78. Which of the following is a reason for ESOPs' popularity?
79. By law, what is the minimum percentage of assets that an ESOP must invest in its
company's stock?
80. A major problem with ESOPs is that:
81. Which of the following is a method where a combination of performance measures
directed toward the company's long- and short-term goals are used as the basis for awarding
incentive pay?
82. What is a balanced scorecard?
83. Which of the following is an advantage of using balanced scorecard?
84. Which of the following is true of a balanced scorecard?
85. An organization wants to provide its employees information about what its goals are and
what it expects employees to accomplish. It is planning to implement an incentive plan that helps
employees understand the organization's goals. Which of the following should be used by this
organization?
86. Employee participation in pay-related decisions can be part of a general move toward:
87. If employee participation in making pay-related decisions is encouraged in an
organization, then:
88. Which of the following is a short-term incentive?
89. Which of the following is a long-term incentive?
