Which of the Following Statements Is True of Stock Option

question 166

Multiple Choice

Which of the following statements is true of stock option plans?

• A) Compensation expense is recorded only if the option price is less than the stock's fair value on the grant date.
• B) Compensation is measured on the date the stock is issued.
• C) The issued stock is recorded at the market price, not the option price.
• D) They all serve to compensate employees.

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Definitions:

Hippocampus

A part of the brain involved in memory formation, navigation, and emotional regulation.

Cortex

The outer layer of the cerebrum in the brain, involved in numerous high-level functions such as consciousness, thought, emotion, reasoning, language, and memory.

Social Information

Data derived from social interactions or contexts, used to guide behaviors and decisions.

Subregion

A smaller, distinct part within a larger region or area, often with its own unique characteristics or functions.