JKC Initiated a Stock Option Plan for Its Three Top

question 5

Multiple Choice

JKC initiated a stock option plan for its three top executives.The plan provided that each executive would receive 6,000 options that would enable each one to purchase 600 shares at the option price.The option price was set at 10 percent below market price at the first exercise date.The options could be exercised after the executives remained as employees of the company for 3 more years.The market price of the shares on the date that the options were granted was $10 per share.The amount of compensation expense the company incurred for the three executives due to the option plan was:

• A)$0
• B)$600
• C)$8,100
• D)$3,000
• E)Cannot be determined from the information provided.

Identify the role of consumer willingness to pay in price discrimination strategies.

Understand the historical context and significance of key legislation in antitrust law.

Identify the roles and powers of administrative bodies in enforcing antitrust laws.

Recognize the concepts of "restraints of trade," monopoly practices, and the legal repercussions for violating antitrust laws.

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Definitions:

Trans Double Bond

A type of double bond where the substituents are on opposite sides, resulting in a more linear and less polar structure compared to cis double bonds.

Melting Point

The temperature at which a solid substance transitions to a liquid state, indicative of purity for pure substances.

Molecular Weights

A measure of the total mass of atoms in a molecule, calculated as the sum of the atomic masses of all atoms in the molecule.

Compound

A substance formed by the chemical combination of two or more elements in fixed proportions.