Which of the Following Is Not a Purpose of Equity-Based

question 46

Multiple Choice

Which of the following is not a purpose of equity-based compensation?

• A)Provides both risk and incentives to employees
• B)Motivates employees by aligning employee and employer incentives
• C)Avoids compensation limits for certain publicly traded company executives
• D)Provides a low- or no-cost form of compensation

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Definitions:

Raise Capital

The process by which a company or individual secures money from investors or lenders for business activities or expansion.

TSX

The Toronto Stock Exchange, which is the largest stock exchange in Canada, trading Canadian securities.

Dealer Market

A financial market mechanism in which buyers and sellers execute transactions through dealers who buy and sell for their own accounts.