One Reason That Companies Issue Stock Options Is to Attempt

question 111

True/False

One reason that companies issue stock options is to attempt to align employees' interests with the interests of the owners.

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Definitions:

Gain Or Loss

The positive or negative financial result obtained from an investment, sale of assets, or other transactions, compared to the original cost.

Installment Note

A loan that requires regular payments, or installments, of principal and interest over a set period, often used for buying large, expensive items.

Journal Entry

A record in accounting that represents a transaction or financial event affecting the entity's financial statements, involving at least one debit and one credit.

Annual Year-End

The conclusion of a 12-month financial year period on which a company's annual financial statements are based.