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1. What are the pros of offering employee stock options?

What are the pros of offering employee stock options?

 

They offer employees an opportunity to have ownership in the company they work for and feel more “connected” to the business as well as to their co-workers.

They are a cost-effective company benefit that can help make employment packages more attractive.

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2. What are the cons of offering employee stock options?

What are the cons of offering employee stock options?  

Although stock option plans offer many advantages, the tax implications for employees can be complicated.

Dilution can be very costly to a shareholder over the long run.

 

 

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3. When do stock options work best?

When do stock options work best?

Stock options are most appropriate for small companies where future growth is expected,

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4. Discuss the problems faced by micro finance institutions

Discuss the problems faced by microfinance institutions

 

Low capacity and low technical skills on microfinancing-management of microfinance institutions would require a pedigree of knowledge on micro-financing to successfully operate in the industry. Most staff recruited do not have experience in microfinance practice.

Inadequate finance-this is lack of financing needed to expand the financial services to clients. This arises due to the low capital base of the institution, inordinate fixed asset acquisition, ostentatious operational disposition, inability to mobilize deposits, poor lending, and questionable governance and management arrangement.

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5. Define current liabilities and explain different types of current liabilities

Define current liabilities and explain different types of current liabilities

-Current liabilities are obligations that a company needs to pay within a year after acquiring it and is settled using the current assets.

Types

Account payable-the company pays the creditors in the short term and found in the balance sheet.

Notes payable-is a general ledger liability account

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