A Short-Term Incentive Plan That Is Designed to Motivate the Short-Term

question 86

Multiple Choice

A short-term incentive plan that is designed to motivate the short-term performance of managers and is tied to company profitability is called a(n)

• A)gainsharing.
• B)annual bonus.
• C)eligibility plan.
• D)capital accumulation program.
• E)commission plan.

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Definitions:

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Cash Flow Hedge

A strategy used in financial risk management to protect against the risk associated with fluctuations in cash flows due to changes in interest rates, foreign exchange rates, or other variables.

Initiation Date

The specific date at which a particular transaction, project, or contract begins.

Forward Contract

A bespoke contract involving two parties for the buying or selling of an asset at an agreed price on a designated future date.