Question

Substantially all full-time employees may participate on an equitable basis.hich of the following is not a characteristic of a noncompensatory stock option plan?
A. Substantially all full-time employees may participate on an equitable basis.
B. The plan offers no substantive option feature.
C. Unlimited time period permitted for exercise of an option as long as the holder is still employed by the company.
D. Discount from the market price of the stock no greater than would be reasonable in an offer of stock to stockholders or others.

Answer 1

Answer:

C. Unlimited time period permitted for exercise of an option as long as the holder is still employed by the company.

Explanation:

Non-compensatory stock option plan allows employees of an organization to buy stocks at a specific price in a specified period of time on equitable basis.

The following are a characteristic of a non-compensatory stock option plan;

- Substantially all full-time employees may participate on an equitable basis.

- The plan offers no substantive option feature.

- Discount from the market price of the stock no greater than would be reasonable in an

offer of stock to stockholders or others.