According to Evidence from Surveys of CFOs, the Top-Most Motive

question 23

Multiple Choice

According to evidence from surveys of CFOs, the top-most motive for firms to go public is to

• A)broaden the base of ownership.
• B)enhance the reputation of the firm.
• C)establish a market price/value for our firm.
• D)create public shares for use in future acquisitions.

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Definitions:

Accounting-Based Incentives

Compensation schemes for employees or executives that are tied to accounting performance measures, such as earnings or return on assets.

Executive Compensation

The total remuneration package provided to executives, including salary, bonuses, shares, options, and other benefits.

Discretion Over

Having the authority to make decisions and judgments in certain situations without the need for specific authorization.

CEO's Retirement

the process when a company's chief executive officer steps down from their position, often involving succession planning and financial considerations for the retiring CEO.