When a Stock Option Plan for Employees Is Compensatory, the Measurement

question 32

Multiple Choice

When a stock option plan for employees is compensatory, the measurement date for determining compensation cost is the

• A) Date the option plan is adopted, provided it precedes the date on which the options may first be exercised by less than one operating cycle
• B) Date on which the options may first be exercised (if the first actual exercise is within the same operating period) or the date on which a recipient first exercises any of his options
• C) First date on which are known both the number of shares than an individual employee is entitled to receive and the option or purchase price, if any
• D) Date each option is granted

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Definitions:

Agency Termination

The process by which the relationship between an agent and their principal is ended.

Violation

The act of breaking or failing to comply with a rule, agreement, or law.

Agency Agreement

A legal contract in which one party (the agent) agrees to act on behalf of another party (the principal) in business transactions or other matters.

Terminate

To bring to an end or to conclude something such as an agreement, employment, or process.