Which of the Following Is Not a Characteristic of a Noncompensatory

question 51

Multiple Choice

Which of the following is not a characteristic of a noncompensatory stock option plan?

• A) Substantially all full-time employees may participate on an equitable basis.
• B) The plan offers no substantive option feature.
• C) Unlimited time period permitted for exercise of an option as long as the holder is still employed by the company.
• D) Discount from the market price of the stock no greater than would be reasonable in an offer of stock to stockholders or others.

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Definitions:

Stock Markets

Platforms where stocks (shares of ownership in companies) and other securities are bought and sold by investors.

Stakeholder

Anyone who potentially has a claim on a firm.

Stock Ownership

Holding shares in a company, which represent a portion of the company's capital and give certain rights to the shareholder.

Voting Rights

The ability of shareholders to vote on corporate matters, such as the election of the board of directors.