Some People Argue That Since Employee Stock Options Are Usually

question 82

Multiple Choice

Some people argue that since employee stock options are usually issued at an exercise price that is less than or equal to market value when they are granted, they have no value.However IFRS requires recording them as compensation expense.The primary reason for this is:

• A)to achieve proper matching.
• B)they are accepted by employees as compensation.
• C)the time value in the options creates economic value.
• D)the entity must use employee stock options in order to compete for talent.

Identify strategies for emphasizing and deemphasizing points in documents and presentations.

Understand the use of white space in document design.

Recognize the role of font types, sizes, and styles in enhancing readability and attractiveness of documents.

Comprehend the guidelines for creating effective PowerPoint presentations and the use of visuals.

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Definitions:

Logistic Regression

A statistical model that estimates the probability of a binary outcome based on one or more predictor variables, using a logistic function.

Indicator Variable

A variable used in statistical modeling and analysis that takes on a value of 0 or 1 to indicate the absence or presence of a certain condition or effect.

Natural Logarithm

The logarithm to the base e (where e is approximately equal to 2.718281828), often used in mathematics and engineering.

Logistic Regression

A statistical method used for predicting a binary outcome from one or more predictor variables, modeling the probability of occurrence of an event by fitting data to a logistic curve.