A Major Disadvantage of a NQSO Is That an Employee

question 16

True/False

A major disadvantage of a NQSO is that an employee must recognize ordinary income on the exercise of the option or at the date of the grant without receiving cash to pay the tax.

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Definitions:

Psychological Disorders

Mental disorders characterized by disturbances in thought, emotion, or behavior, significantly impairing personal functioning.

Religiously Involved

Participating in or committed to religious practices or institutions with regularity and devotion.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep-wake cycles.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wakefulness.