A Company Surprises the Market with an Announcement That It

question 11

Multiple Choice

A company surprises the market with an announcement that it has granted stock options to senior executives.The options are exercised four years later.When does dilution take place?

• A) Dilution takes place when the options are exercised
• B) Dilution takes place on the announcement date
• C) Dilution takes place gradually over the four years
• D) There is no dilution

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Definitions:

Service Risks

Refers to the potential for losses or negative outcomes that a business may experience when delivering services to customers.

HR Activities

Tasks and functions carried out by the Human Resources department, including recruiting, training, employee relations, and benefits management.

Outsourcing

The practice of hiring third parties to handle tasks traditionally performed within the company, often to save costs or access specialized expertise.

Payroll Administration

The process involved in managing the compensation of employees, including salary disbursement, tax withholding, and record-keeping.