This is true, it is a misunderstandment
Answer:
$1,000,000
Explanation:
Gallagher Corporation
Stock option × Option estimated fair value /Numbers of years
Stock option $400,000
Option estimated fair value $10
Numbers of years 4
Hence:
($400,000 × $10) / 4 years
=$4,000,000/4years
= $1,000,000
Therefore pretax compensation expense for year 1 will be $1,000,000
Answer:
Ethics is defined as moral principles that governa person's behaviour or the conducting of an activity
Legal norms and ethical norms are not same and sometimes not agreeable also. Some ethical norms may be wrong legally but some legal norms may be wrong ethically.
<u>Explanation:</u>
The law is set of rules that guide our conduct in society and enforceable through public agencies. For business environment, law provides important guide to make ethical decision making. But sometimes the norms which are ethically right are illegal and sometimes legal norms are unethical.
The example of cases which are ethically right but legally wrong are cheating in taxes or driving over the speed limit or spitting by the road side. The example of cases which are ethically wrong but legal right are falsifying financials, misleading markets and many more.
