S Corporation Created a Stock Option Plan for Its Two

question 18

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

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Definitions:

Ambivalent

Having mixed feelings or contradictory ideas about something or someone.

Dental Hygienist

A licensed dental professional specializing in preventive oral health, typically focusing on techniques in oral hygiene.

Ambivalent Attachment

The attachment style for infants who are unwilling to explore an unfamiliar environment but seem to have mixed feelings about the caregiver—they cry when the caregiver leaves the room, but they cannot be consoled by the caregiver upon the caregiver’s return.

Secure

Feeling of being safe, stable, and free from fear or anxiety.