If a Corporation Grants a Stock Option to an Employee

question 91

True/False

If a corporation grants a stock option to an employee on July 1, 2010 , that allows the employee to purchase stock at a price substantially below the stock's fair value at July 1, 2010 , an element of compensation expense should be recorded on the corporation's books.

Recognize the different economic systems and their key features, such as capitalism and socialism.

Identify the characteristics of professional employment and its regulatory bodies.

Understand the implications of industrialization and post-industrialization on society and the economy.

Recognize the impact of part-time work and educational requirements on the labour market.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on a sum of money over a period of time.

Loanable Funds

This refers to the total amount of funds available for borrowing in the financial markets, determined by the saving rate and investment demands.

Equilibrium Interest Rate

The rate of interest where the quantity of money sought equals the amount available, equilibrating investment and savings across the economy.

Loanable Funds

The funds in financial markets that are available for borrowing, reflecting the relationship between the demand for and supply of these funds.