Which Type of Stock Options Does Not Give Executives Favorable

question 13

Multiple Choice

Which type of stock options does not give executives favorable tax treatment?

• A)incentive
• B)restricted
• C)nonstatutory
• D)phantom

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Definitions:

Net Purchases

The total amount of purchases after subtracting returns, allowances, and discounts.

Revolving Credit Agreement

A credit facility allowing a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.

Commitment Fee

A banking fee charged by lenders to secure a line of credit or a loan, often paid by borrowers to guarantee access to credit.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark for other interest rates.