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:

Primary Sexual Characteristic

Primary sexual characteristics are the biological and anatomical features present at birth and directly involved in reproduction, such as the ovaries in females and the testes in males.

Testes

The male reproductive glands that produce sperm and testosterone, located in the scrotum.

Penis

A male reproductive organ that also serves as the outlet for urine in males.

Breasts

Glandular organs located on the chest of female mammals that produce milk to feed newborn offspring; also present in a less developed form in males.