S Corporation Created a Stock Option Plan for Its Two

question 76

Multiple Choice

S Corporation created a stock option plan for its two top executives.The plan provided that each executive would receive 1,000 options, which would enable him or her to purchase 100 shares at 75 percent of the market price on the date the options, became exercisable.The options were exercisable in two years.At the date of granting the options, the market price of the shares was $12 per share.The date of measurement for the stock option plan was the:

• A)date the employees' exercise their options.
• B)end of the second year.
• C)end of the first year.
• D)date of grant.

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Definitions:

Informational

pertains to the provision or exchange of knowledge or data through various means and formats.

Linear Separable

A property in computational geometry and machine learning where two sets of points can be completely separated by a single straight line.

Time Perspective

is the way individuals conceptualize time and the effect of this conceptualization on their behavior, decisions, and overall outlook on life.

Legislative Agenda

A set of priorities and proposed laws that a legislative body or a political leader aims to enact and implement during a legislative session.