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:

Cost Analysis

The review and evaluation of the costs associated with a project, process, or activity, aimed at identifying opportunities for cost reduction and efficiency improvement.

Cost Reduction Target

A goal set by a company to decrease expenses in order to improve profitability.

Cost Elements

The various types of expenses that contribute to the total cost of a product or service, including materials, labor, and overhead.

Leverage Items

Products or services critical to an organization's operations that can be used as a bargaining tool in negotiations.