Which of the Following Is NOT a Characteristic of a Non-Compensatory

question 88

Multiple Choice

Which of the following is NOT a characteristic of a non-compensatory employee stock option plan (ESOP) ?

• A) The plan is generally available to all employees.
• B) There is only a small discount from the market price.
• C) The plan requires the employee to pay an upfront premium.
• D) The plan is accounted for as compensation expense.

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Definitions:

Percentile

A measure that indicates the value below which a given percentage of observations in a group falls.

Frequency Distribution

A table or chart that gives each piece of data in the set and the frequency, or the number of times that it appears in the data set.

Standard Deviation

A statistic that measures the dispersion or variation of a set of values, indicating how much the values differ from the mean of the set.

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.