Which of the Following Statements Regarding Restricted Stock Is False

question 22

Multiple Choice

Which of the following statements regarding restricted stock is false?

• A)Like stock options, restricted stock has to vest before it can be sold.
• B)Like nonqualified stock options, the employee's income inclusion for restricted stock is the bargain element.
• C)Even if the value of restricted stock decreases from the price on the grant date, it retains some value to the employee.
• D)There are no effective tax planning elections for restricted stock.

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Definitions:

Individualized Consideration

Individualized consideration is a component of transformational leadership where leaders attend to the needs of each follower, acting as a mentor or coach, and respecting followers' individual needs.

Idealized Influence

A component of transformational leadership where leaders act as role models, inspiring trust and respect through their actions and ethics.

Individualized Consideration

A leadership behavior that involves giving personal attention and support to followers based on their specific needs and aspirations.

Intellectual Stimulation

The process of encouraging creative and critical thinking, often used in leadership to foster innovation and problem-solving.