Which of the Following Is True About Executive Compensation

question 9

Multiple Choice

Which of the following is true about executive compensation?

• A)U)S. executives are the highest paid in the world.
• B)Compensation only comes in the form of salaries.
• C)Executives are prohibited by federal law to earn more than $1 million a year.
• D)A golden parachute refers to executives bailing out of a company before it goes bankrupt.
• E)An executive's skill and performance has little do to with his or her compensation.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, typically labor.

Marginal Resource Cost

The added expenditure for making one more unit of a product or service.

Profit-Maximizing

The process or strategy undertaken by a firm to achieve the highest possible profit from its operations, considering factors like pricing, production, and cost management.

Labor Demand Curve

A downward-sloping curve that represents how the quantity of labor demanded by employers changes as the wage rate changes.