Stock Options
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Why do companies offer stock options? Should stock option compensation be included as an expense when calculating an organization's net income? Why or why not? If so, how should the amount of expense be calculated?
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Solution Summary
The solution evaluates the pros and cons of stock options to employees
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Stock option compensation plans are used to motivate and reward employees based on the value of the corporation's stock. It is believed that employees holding or earning the rights to stock options will work harder to increase shareholders' wealth than employees on straight ...
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