What Statement Is False with Respect to an Incentive Stock

question 7

Multiple Choice

What statement is false with respect to an incentive stock option (ISO) ?

• A)To qualify as an ISO, the option price must equal or exceed the fair market value of the stock at the time the option is granted.
• B)The spread is not subject to the alternative minimum tax.
• C)If the employee meets the holding period requirement, the employer does not obtain a business deduction.
• D)The spread is the excess of the FMV of the share at the date of exercise over the option price.
• E)None of the above are false.

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Definitions:

Organizational Politics

The actions and conduct engaged by people in a work environment to obtain authority, sway decision-making, and realize individual or collective ambitions.

Potentially Functional

Describes something that may serve a purpose or be useful in some way, though it may not currently be in operation or use.

Dysfunctional

Behaviors or characteristics that negatively impact the functioning of an individual, group, or organization, often leading to decreased performance or well-being.

Behaviours

Actions or reactions of individuals, often in response to external stimuli, that can be observed and measured.