Which of the Following Statements in Relation to Modifications to the Terms

question 18

Multiple Choice

Which of the following statements in relation to modifications to the terms and conditions on which equity instruments were granted as part of an employee share scheme is correct?

• A) a reduction in the exercise price of options will reduce the fair value of the share options
• B) a reduction in a performance hurdle relating to profitability targets will reduce the fair value of the options
• C) a shortening of the vesting period will increase the fair value of the share options.
• D) an increase in the number of equity instruments granted is not an example of a modification

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Definitions:

Robert Katz

This refers to a scholar who identified three essential managerial skills: technical, human, and conceptual.

Technical

Relating to a specific field of expertise, particularly in science and engineering, or skills and knowledge associated with it.

Human

A member of the species Homo sapiens, characterized by advanced cognitive abilities and complex social behaviors.

Conceptual

Pertaining to the formulation or understanding of abstract ideas and principles.