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Which of the Following Is True When Compensating Employees with Company

Question 53

Multiple Choice

Which of the following is true when compensating employees with company equity?


A) The equity to be issued will be considered salary and not subject to securities laws.
B) The equity will be considered a gift since no cash was issued.
C) The shares may be considered a taxable item.
D) The shares cannot be tied to performance of services.

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