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:

Perception

The process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events.

Two-dimensional Image

A visual representation on a flat surface, having only height and width, without depth.

Three Dimensions

Pertaining to or having length, width, and depth, which are the physical properties that define the space an object occupies.

Psychophysics

A branch of psychology that deals with the relationships between physical stimuli and the sensations and perceptions they produce.