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marta [7]
3 years ago
9

The compensation associated with executive stock option plans is:A. The book value of a share of the company's shares times the

number of options.B. The estimated fair value of the options.C. Allocated to expense over the number of years until expiration.D. Recorded as compensation expense on the date of grant
Business
1 answer:
Mekhanik [1.2K]3 years ago
5 0

Answer:

The correct answer is letter "B": The estimated fair value of the options.

Explanation:

Employee Stock Options or ESOs are equity compensations given be firms typically to high-range executives. The company provides the workers with call options so employees can purchase the derivatives at a certain price and time. These types of compensations are useful as motivations for the employees to help them perform better in their duties.

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Answer:

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Explanation:

The journal entry to record the issuance of common stock is presented below:

Cash A/c Dr $12,000         (1,000 shares × $12)

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    To  Additional Paid-in Capital in excess of par - Common Stock $2,000

(Being the issuance of stock is reported and the remaining balance i.e $2,000 is credited to the additional paid-in capital account)

While issuing the stock, we debited the cash account as there is a cash inflow and credited the common stock and additional paid-in capital account as the share is issued which affect the stockholder equity

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Answer:

True

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Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.

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