Why Is It Useful for Organizations to Think in Terms

question 91

Essay

Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples.

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Definitions:

"Passed Through"

A process in which financial benefits or obligations are transferred from one party to another, often used in the context of mortgage-backed securities.

Unit Investment Trusts

Fixed portfolios of stocks, bonds, or other securities assembled by a sponsor, which are then sold in shares to investors, offering a fixed return over the trust's lifespan.

Fixed-Income Portfolios

Investment portfolios that consist primarily of debt securities like bonds, which are designed to provide a fixed return through interest payments to investors over time.

Actively-Managed

A strategy where a fund's investments are frequently adjusted by a manager or management team in an attempt to outperform the market.