Phantom Stock Plans Refer to Stock Plans That Provide

question 43

Multiple Choice

Phantom stock plans refer to stock plans that provide .

• A)shares of stock for the achievement of predetermined financial targets such as profit or growth in earnings per share
• B)shares without cost to the executive so that the employee can sell the stock but is restricted from do so for a set period of time
• C)units instead of shares of company stock. Then at some point in the future, they receive value (usually in cash)equal to the appreciation of the units they own
• D)permit the recipient to exercise the stock option or to take any appreciation in the stock price in cash, stock, or some combination of these
• E)the option to purchase stock at a stated price, usually the fair market value at the time of the grant

Distinguish between intrinsic and extrinsic rewards and their impact on employee motivation.

Understand the role of profit-sharing in linking pay with organizational performance.

Grasp the significance of content theories in guiding organizational motivation strategies.

Interpret the effectiveness of performance measurement and feedback in organizational settings.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of the entity.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) to guide companies and organizations in preparing financial statements globally.

Direct Method

A cash flow statement presentation that lists major classes of gross cash receipts and payments, giving a clear view of actual cash flows.

Cash Flow Statement

A financial report detailing the combined cash inflows from a company's regular operations and investment income, in addition to the cash outflows for funding business endeavors and investments, all within a designated period.