If a firm offers qualified stock options to its employees, one of the disadvantages is the fact that should the company not go public, but instead is sold in a 'strategic sale' to another cpmpany, the stock ' options will be worthless to the employee, even if vested. That is false, although there may be some sub-optimal tax consequences around the holding period. That is true That is false, in fact it is better for the option holder to not have the company go public and be sold privately That is true, due to an automatic forfieture provision, with is common