When a Stock Option Plan for Employees Is Compensatory, the Measurement

question 32

Multiple Choice

When a stock option plan for employees is compensatory, the measurement date for determining compensation cost is the

• A) Date the option plan is adopted, provided it precedes the date on which the options may first be exercised by less than one operating cycle
• B) Date on which the options may first be exercised (if the first actual exercise is within the same operating period) or the date on which a recipient first exercises any of his options
• C) First date on which are known both the number of shares than an individual employee is entitled to receive and the option or purchase price, if any
• D) Date each option is granted

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Definitions:

Sporozoites

Motile infective forms of parasitic protozoa that can enter host cells; they are often associated with the life cycle of malaria-causing Plasmodium.

Nonmotile

Referring to organisms or cells that are incapable of self-movement.

Mycelium

The vegetative body of most fungi and certain protists (water molds); consists of a branched network of hyphae.

Locomotion

The ability of an organism to move from one place to another using its own power.