In Which of the Following Situations Would a Company Be

question 9

Multiple Choice

In which of the following situations would a company be more likely to offer phantom stock?

• A) The company is not privately held.
• B) The company is not publicly traded.
• C) The company does not want to increase organizational loyalty among employees.
• D) The company has very low profits.

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Definitions:

Operating Activities

Involves the primary revenue-generating activities of an organization, such as sales and services, as reflected in its cash flow.

Selling Merchandise

The process of offering goods for sale to customers, often in a retail setting, which constitutes the primary revenue-generating activity of merchandising companies.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or during the normal operation cycle of the business, whichever is longer.