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

question 8

Multiple Choice

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

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

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Definitions:

Price Cutting

A strategy where a company reduces the prices of its goods or services, often to attract more customers or compete with rivals.

Product Class

A broad category of products that serve a similar function or are marketed in a similar manner but vary in features, quality, and price.

Product Line

A group of related products under a single brand offered by a company, catering to varied customer needs or preferences.

Yield Management Pricing

A pricing strategy that uses demand forecasting and flexibility in pricing to maximize revenue, often used in the hospitality and airline industries.