Which of the Following Statements Is (Are)true About a Share

question 27

True/False

Which of the following statements is (are)true about a share option:
A. The nature of the holder's right in relation to the option is affected by the likelihood that the option will be exercised.
B. The nature of the holder's obligations in relation to the option, are affected by the likelihood that the option will be exercised
C. The likelihood of the option being exercised does not impact on its classification as a financial liability.
D. The likelihood of the option being exercised does impact on its classification as a financial liability
E. They are always issued to management of entities as part of their pay structure.

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Definitions:

Persuadability

The quality or characteristic of being easily influenced or convinced by arguments, appeals, or suggestions.

Education And Intelligence

The process of acquiring knowledge, skills, values, and attitudes through study and experiences, and the ability to apply these cognitive skills towards effective problem-solving and adaptation to the environment.

Self-Esteem

An individual's subjective evaluation of their own worth or value.

Need For Cognition

A personality trait that denotes a person's desire or enjoyment of thinking, understanding, and analyzing complex ideas.