1. Which of the following is an advantage of a restricted stock plan over a stock option plan (to either the employer or the employee)?
a. It creates new job opportunities in a company.
b. It never becomes completely worthless.
c. It increases the market price of the stock.
d. It does not require cash inflow from the employee to convert the restricted stock to common stock.
e. Both answers (b) and (d) are advantage
2. If a company offers stock options to employees, APIC on Stock Options will be debited
a. at the grant date.
b. at the date(s) that compensation expense is recognized.
c. at the date the options are exercised.
d. at the date the options are forfeited.
e. both answers (c) and (d) are correct.