Match each statement with the correct term below.
-Incentive stock option
A)A separate, parallel tax system designed to ensure a taxpayer pays some tax.
B)A compensation tool that is based on potential price increases of the company's stock.
C)An individual trust account maintained for the exclusive benefit of an individual or beneficiary.
D)A type of defined contribution pension plan in which the company and the employee contribute a fixed percentage of the employee's salary to the plan.
E)A pension plan in which the benefits are based on the number of years an employee has worked for a company and on the employee's annual salary.
F)A pension plan whose benefits are determined by the amount of contributions the employee and the company contribute to the plan and the earnings of the plan.

Question

Quizplus · Accepted Answer

Incentive stock options are a form of compensation to employees in the form of the option to purchase company stock at a discounted price, which can become valuable if the company's stock price increases.

Match Each Statement with the Correct Term Below