Question

4. AirCar LLC, a producer of consumer electronics, had provided its employees an annual bonus. After a change in management, the company has decided to replace bonuses with a stock option plan. Which of the following statements is true of AirCar LLC? a. It provided group incentives; now, it provides organizational incentives. b. It provided individual incentives; now, it provides group incentives. c. It provided individual incentives; now, it provides organizational incentives. d. It provided organizational incentives; now, it provides individual incentives.

Answer 1

Answer:

Option C. It provided individual incentives; now it provides organizational incentives.

Explanation:

The reason is that incentives were previously assessed on the individual performance and now changing it to stock option reflects that if the whole of the organization will perform well then all of them will benefit from the increase in the value of the company shares which benefits employee, organization and the shareholders as well.