All of the Following Characteristics Are True of an Incentive

question 64

Multiple Choice

All of the following characteristics are true of an incentive stock option with the exception of

• A)the option price must be equal to or greater than the stock's FMV on the option's grant date.
• B)the employee cannot own more than ten percent of the voting power of the employer corporation's stock immediately prior to the option's grant date.
• C)the option must be granted within ten years from the date the plan is adopted and the employee must exercise the stock option within ten years from the grant date.
• D)there is no limit to the value of the options that become exercisable to an employee in a single year.

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Definitions:

Bleaching

The process of removing color from a substance, often through chemical means, which can also refer to the destruction of coral coloration due to environmental stress like warm sea temperatures.

Mudflat

Flat, muddy areas found in coastal environments and estuaries, exposed at low tide and flooded at high tide, serving as important feeding and breeding grounds for numerous species.

Bacterial Biofilms

Complex communities of bacteria that adhere to surfaces and are encased in a self-produced protective matrix, often leading to increased resistance to antibiotics and disinfectants.

Estuaries

Coastal water bodies where freshwater from rivers and streams mixes with saltwater from the ocean, fostering high biological diversity and productivity.