A Stock Option Plan Is a Motivational Device in Which

question 27

True/False

A stock option plan is a motivational device in which the corporation grants employees the right to acquire a specified personalized number of shares of the corporation at a predetermined invariant price and for a specified time window.

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Definitions:

On Demand

A service or product made available whenever requested by a customer, often implying immediate or quick delivery.

Acceleration Clause

A provision in a loan contract that allows the lender to demand immediate repayment of the entire loan amount if certain conditions are breached.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Negotiable

Able to be transferred or endorsed to another party in exchange for money or as part of a contractual agreement.