Question

Which arrangement represents a long-term company-wide incentive plan that provides employees with the option to purchase ownership in the company?

Answer 1

Employee stock option plans represents long term company wide incentive plan that provides employees with the option to purchase ownership in the company. Many companies use employee stock options plans to compensate, hold, and recruit employees. These are contracts between an employer and its employees that give employees the ability to acquire a particular number of the company's shares at a fixed price.