A Company Issued Share Option Is an Instrument That Gives

question 17

Multiple Choice

A company issued share option is an instrument that gives the holder the right but not the obligation to:

• A) buy a certain number of shares in the company by a specified date at a stated price;
• B) sell a certain number of shares in the company by a specified date at a stated price;
• C) receive a certain dividend declared by the company by a specified date;
• D) receive a bonus issue of shares in a proportion as notified by the company.

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Definitions:

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period.

Inventory Items

Inventory items refer to the goods and materials that a business holds for the ultimate goal of resale or processing.

Gross Amount

The total sum before any deductions are made, such as taxes or discounts.

Merchandise

Merchandise encompasses the goods and products that a retail business purchases to then sell to its customers.