All of the Following Characteristics Are True of an Incentive

question 64

Multiple Choice

All of the following characteristics are true of an incentive stock option with the exception of

• A)the option price must be equal to or greater than the stock's FMV on the option's grant date.
• B)the employee cannot own more than ten percent of the voting power of the employer corporation's stock immediately prior to the option's grant date.
• C)the option must be granted within ten years from the date the plan is adopted and the employee must exercise the stock option within ten years from the grant date.
• D)there is no limit to the value of the options that become exercisable to an employee in a single year.

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Definitions:

Research Design

A structured plan utilized to investigate questions scientifically.

Experiment

A systematic method employed to uncover new findings, confirm theoretical propositions, or exhibit established truths.

Observational Study

A research method in which the subjects are observed in their natural setting without any manipulation by the researcher.

Correlational Study

A research method used to determine the relationship between two variables, without inferring a cause-and-effect relationship.