Which of the Following Statements Is (Are)true About a Share

question 27

True/False

Which of the following statements is (are)true about a share option:
A. The nature of the holder's right in relation to the option is affected by the likelihood that the option will be exercised.
B. The nature of the holder's obligations in relation to the option, are affected by the likelihood that the option will be exercised
C. The likelihood of the option being exercised does not impact on its classification as a financial liability.
D. The likelihood of the option being exercised does impact on its classification as a financial liability
E. They are always issued to management of entities as part of their pay structure.

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Definitions:

Telephone Interviews

A method of data collection or interviewing conducted over the phone.

Wage Compression

A situation where differences in wages between employees become small, often because of external pressures, leading to reduced pay gaps between new and experienced employees, or between different job roles.

Annual Basis

Refers to calculations, measurements, or assessments made over the course of a year.

Increased Turnover

A higher rate at which employees leave a company and are replaced, which can indicate dissatisfaction or a dynamic job market.