A Stock Option Plan Will Be Defined as Compensatory If

question 117

Multiple Choice

A stock option plan will be defined as compensatory if it has which one of the following characteristics?

• A)The discount from market price for the stock option is greater than either what would be reasonable in an offer of stock to stockholders or others or the per-share amount of issuance costs avoided by not issuing the stock to the public.
• B)Employees have 31 days or less from the date the purchase price is set to decide whether or not to enroll in the plan.
• C)Almost all full-time employees are able to participate in the plan.
• D)The purchase price is based solely on the market price of the stock on the purchase date.

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Definitions:

Deficient Fluid Volume

A condition where the body lacks sufficient fluid volume, potentially leading to dehydration and affecting normal bodily functions.

Abdominal Surgery

Surgical operations that involve opening the abdominal cavity to diagnose, treat, or prevent disease affecting any of the organs within the abdomen.

Clinical Findings

are the outcomes of clinical examinations and tests that provide data about a patient's health condition.

Surgical Incision

The act of making a cut in the body with a sharp instrument, especially during surgery to access or remove an internal part of the body.