List and explain the factors that are important in accounting for stock-based compensation plans

What will be an ideal response?

Answer:
1. Exercise price or strike price—the fixed amount paid to acquire a share of stock based on the terms of the option plan.
2. Vesting period or service period—the time that the employee must remain with the company before exercising the option.
3. Expiration date—the point where the employee can no longer exercise the option
4. Compensation arrangement—specifies the number of options granted, the exercise price, and the expiration date.

Business

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