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Use the following information for question 14 and 15
Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was $100.
-What is the compensation expense recorded by Swing High Inc.?
Centralization
The accumulation of decision-making power at the higher echelons of an organization.
Standardization
The process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or services across different areas or sectors.
Formalization
The extent to which organizations standardize behavior through rules, procedures, protocols, and formal structures.
Vertical Differentiation
The structuring of an organization into levels of hierarchy, often to distinguish between varying degrees of authority and responsibility.
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