When Employees Are Granted Options as Part of a Compensatory

question 22

Multiple Choice

When employees are granted options as part of a compensatory stock option plan,

• A) Total compensation is measured using a fair value method.
• B) Total compensation is measured using the intrinsic method.
• C) Total compensation is measured when the options are in the money.
• D) Total compensation is measured using the difference between the strike price and the fair value of the options on the grant date.

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Definitions:

Default Value Property

An attribute in software that specifies the initial value for a setting or variable before any user modifications.

Field Properties Pane

A user interface component in software where attributes and settings of a database field can be viewed and edited.

Validation Dialog Box

A pop-up window that appears during form submission to confirm the accuracy of the information entered by the user.

Yes/No Data Type

A binary data type often used in databases and software programming to represent a truth value, typically storing values equivalent to true/false or yes/no.