Reacting to Opposition to the FASB's "Share-Based Payment" Exposure Draft

question 172

Essay

Reacting to opposition to the FASB's "Share-Based Payment" Exposure Draft, Senator Carl Levin stated, "Stock options are the 800-pound gorilla that has yet to be caged by corporate reform." In reference to a bill that would thwart the FASB's position, Senator John McCain said, "This legislation blocking stock option expensing not only undermines FASB's independence, but undermines the effort to restore confidence in our financial markets as well." Discuss what these two senators meant by their statements.

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Definitions:

Sales Presentation

A structured dialogue or demonstration aimed at persuading a potential customer to purchase a product or service.

Initial Sales Call

The first contact made by a sales representative to a potential customer, aiming to introduce the product or service and gauge interest.

Inbound Marketing

Marketing activities that draw the attention of customers through blogs, Twitter, LinkedIn, and other online sources, rather than using more traditional activities that require having to go out to get customers’ attention, such as making a sales call.

Preapproach Stage

A phase in the sales process where research and planning are conducted before making initial contact with a prospective customer.