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:

Myocardial Infarction

A medical condition commonly known as a heart attack, occurring when blood flow to the heart muscle is abruptly cut off, causing tissue damage.

Cholesterol-Lowering Agent

Medications or substances intended to reduce levels of cholesterol in the blood to prevent cardiovascular diseases.

Coronary Arteries

The blood vessels that supply blood and oxygen to the heart muscle, crucial for its function and health.

Weight Loss Program

A planned course of action, including diet, exercise, and possibly behavioral therapy, designed to help an individual lose weight.