The Use of Stock Options Remains a Popular Incentive Technique

question 164

True/False

The use of stock options remains a popular incentive technique in start-up organizations.

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Definitions:

Declining Balance

A method of calculating depreciation for an asset, whereby the asset loses value at a decreasing rate over time.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used for financial reporting.

SYD Calculations

Sum-of-Years' Digits method, a form of accelerated depreciation where depreciation is higher in the earlier years of an asset's life.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.