Employee stock options are a call option on a company's own stock issued as a form of non-cash compensation. The main reason companies offer these to their employees is to:

A.

align the interest of the employee with the firm.

B.

keep labor costs down.

C.

keep employees long term.

D.

align stockholder and firm's interests.

Which of the following areas is not generally recognized to generate excessive conflicts of interest?

A.

underwriting and research in investment banking

B.

auditing and consulting in accounting firms

C.

commercial banking

D.

credit assessment and consulting in credit-rating agencies

Growing economies of scope in the financial industry refers to:

A.

firms offering more and varied types of services under one roof.

B.

firms becoming more specialized in offering a limited set of services.

C.

firms expanding beyond traditional regional boundaries.

Universal banking Which of the follow ts of interest? was unimpacted by the repeal of the Glass-Steagall Act. O A. underwritin benefited from the repeal of the Glass-Steagall Act. B. auditing anauunouluny'"auuuu"unyi" O C. commercial banking O D. credit assessment and consulting in credit-rating agencies