A ________ Is Designed to Provide Benefits of Direct Executive

question 88

Multiple Choice

A ________ is designed to provide benefits of direct executive stock ownership.

• A) Restricted stock plan
• B) Cash based plan
• C) Golden parachute
• D) Golden handcuffs plan

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Definitions:

Collection Period

The average number of days required to collect receivables from customers.

Stock Dividend

Payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.

Cash Discounts

An incentive offered by sellers to buyers for early payment of invoices, aimed at encouraging prompt payment and improving cash flow.

Short-term Financial Policy

Pertains to strategies and decisions related to managing a company’s current assets and liabilities to ensure liquidity.