A Major Disadvantage of an NQSO Is That an Employee

question 54

True/False

A major disadvantage of an NQSO is that an employee must recognize ordinary income on the exercise of the option or at the date of the grant without receiving cash to pay the tax.

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Definitions:

Fashion Challenge

A competition or contest often seen on social media or television, where participants create or style outfits under certain constraints or themes.

Contest

A competitive event where individuals or teams compete against each other to win prizes or recognition.

Proofs of Purchase

Documents or items that serve as evidence that a product has been bought, such as receipts, barcodes, or warranty cards.

Ball Toy

A simple toy consisting of a spherical object designed for play in a variety of games and activities.