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:

Win-win Conflict

A conflict resolution outcome where all parties involved achieve their objectives or benefit mutually.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Oligopoly

A market structure characterized by a small number of large firms that have significant control over prices and market share.

Monopoly Markets

A type of market structure where a single producer or group of producers have control over the supply of a product or service, often lacking competition.