Answer:
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.
Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include
Answer:
b. exit barriers are high
Explanation:
Declining industries are those industries wherein the industry has saturated and experiences a negative growth. The characteristic of such industries being the products are lesser in demand.
For instance, cassettes and magnetic tapes industry was in demand until the arrival of more advanced forms such as compact discs and usbs, post which those industries turned into declining industries.
A declining industry with high barriers to exit would experience a greater competition since the barriers would encourage competition instead of withdrawal. And with higher costs of withdrawal, the firms continue producing at negative growth.
Dell works with software creators such as Oracle and Microsoft to help increase business sales of its servers and their software. This is an example of a strategic alliance.
A strategic alliance refers to a mutual bond between two companies that are arranged where they create their project while maintaining a certain degree of independence in decision-making.
- This agreement between two companies adheres to a set of mutually agreed upon clauses and protocols while remaining independent organizations in and of themselves.
- Strategic alliances are usually made in order to collaborate upon a project that ends up being beneficial for both the companies involved in the alliance, without hampering the independent capacities of any particular company.
- Strategic alliance helps by expanding into a newer market, introducing new products, and efficiently dealing with new and potential competitors.
Therefore, Dell works with software creators such as Oracle and Microsoft to help increase business sales of its servers and their software. This is an example of a strategic alliance.
Learn more about a strategic alliance here: brainly.com/question/4467038
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Answer:
Depreciation
Explanation:
This is basically a reduction in value of an asset over period of time mainly because of wear an tear.
