________ Are When Employees Are Given the Right, but Not

question 23

Multiple Choice

________ are when employees are given the right, but not the obligation, to purchase stock at predetermined prices.

• A) Flexibility grants
• B) Stock grants
• C) Stock options
• D) Grant options

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Definitions:

Long-term Loss

The loss realized from the sale of an asset held for more than one year, which can offset long-term gains for tax purposes.

Capital Gain

The profit made from the sale of a capital asset, like real estate or stocks, that exceeds the purchase price.

Worthless

Pertaining to an asset that has lost all monetary value.

Short-term Loss

A monetary deficit incurred from the sale or trade of an asset owned for less than a year.