Under a (Non-Compensatory) Employee Stock Option Plan (ESOP), When an Option

question 26

Multiple Choice

Under a (non-compensatory) employee stock option plan (ESOP) , when an option is sold to an employee, the employer debits Cash and credits

• A) Common Shares.
• B) Stock Option Payable.
• C) Contributed Surplus - Stock Options.
• D) Stock Option Revenue.

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Definitions:

Anchoring Heuristic

A cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered when making decisions.

Historical Precedent

Historical precedent refers to decisions or actions taken in the past that serve as a model or guide for how similar events are handled in the future.

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Individual Creativity

The ability of a person to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating, and entertaining.