Which of the Following Is a Characteristic of an Incentive

question 20

Multiple Choice

Which of the following is a characteristic of an incentive stock option?

• A)The issuer recognizes compensation expense if the strike price is below the stock's selling price when the option is granted.
• B)The issuer recognizes a compensation deduction when the option is exercised.
• C)The option holder recognizes compensation income when the option is exercised.
• D)The option holder recognizes capital gain when the stock acquired with the option is sold.

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Definitions:

Economics

The social science that studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices on allocating resources.

Scheduling Workers

entails the organization and assignment of work hours for employees, ensuring that staffing levels are adequate to meet operational requirements.

Allowance Factor

A factor used in planning and estimation to account for potential deviations from standard conditions or expected performance.

Normal Time

The amount of time typically required to complete a process or task under normal conditions, often used in planning and scheduling.