Match Each Statement with the Correct Term Below

Multiple Choice

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.