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:

Financial Crisis

A situation where financial assets suddenly lose a large part of their nominal value, leading to economic instability and potential collapse.

Nonprofit Organization

An entity that operates for the advancement of a public or social cause, rather than for the profit or gain of its directors or shareholders.

Brand Equity

The value derived from a brand's name and reputation, which can influence consumers' buying decisions and loyalty.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in a business or project and can be affected by its outcomes.