Which of the Following Is True About Stock Option Plans

Multiple Choice

Which of the following is true about stock option plans?

A) They refer to bonuses from the work unit's cost savings and productivity improvement.
B) They give employees the right to purchase company stock at a predetermined price up to a fixed expiration date.
C) They directly award bonuses to employees based on cost savings and increased labor productivity.
D) They tend to weaken employee commitment to the organization.
E) They encourage employees to buy company stock, usually at a discounted price or through a no-interest loan.