Final answer:
The common forms of share-based compensation include stock options, restricted stock units, and employee stock purchase plans. Cash bonuses, however, are paid in cash and not considered a form of share-based compensation. option (C)
Step-by-step explanation:
The answer to the question of which form of share-based compensation is not commonly used is c) Cash bonuses. Share-based compensation is a way for companies to reward employees with equity in the company, rather than cash. This can take several forms, including:
- Stock options - contracts granting the employee the right to buy shares at a fixed price in the future.
- Restricted stock units (RSUs) - grants of company stock that are subject to vesting and are not transferable until certain conditions are met.
- Employee stock purchase plans (ESPPs) - programs that allow employees to buy company stock at a discount.
On the other hand, cash bonuses are a form of direct compensation paid in cash, rather than shares of stock, and are not considered share-based compensation.