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:

Sense of Urgency

A feeling of importance or necessity to act quickly or accomplish tasks in a timely manner.

Dormant Stakeholders

Individuals or entities that currently have no active engagement or significant influence in a project or company but may have an interest or become influential in the future.

Discretionary Stakeholders

Individuals or groups whose involvement with the project or business is optional and based on their decision or interest.

Power

The ability or capacity to influence or control the behavior of others or the course of events.