If an Employee Fails to Exercise a Share Option Before

question 62

True/False

If an employee fails to exercise a share option before its expiration date, the company should decrease compensation expense.

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Definitions:

Negative Reinforcement

A process in behavior modification where a response is strengthened because an unfavorable condition is stopped or avoided.

Positive Reinforcement

A principle in behavioral psychology involving the introduction of a rewarding stimulus following a desired behavior, to increase the likelihood of that behavior occurring in the future.

Prescription Medication

Drugs that legally require a medical prescription to be dispensed.

Reinforcement Schedule

The pattern or timing of rewards or punishments that influences the rate and persistence of a behavior in the context of learning or conditioning.