Which of the Following Statements Is FALSE Regarding Short-Term and Long-Term

question 11

Multiple Choice

Which of the following statements is FALSE regarding short-term and long-term incentives?

• A)Short-term incentives are usually additional salary rewards that an employee can receive on a quarterly or yearly basis.
• B)Short-term incentives are based on meeting short-run objectives such as a quarterly sales or a production goal.
• C)Long-term rewards focus on future profitability.
• D)Stock options are a common short-term incentive.
• E)Long-term incentives are usually best for upper-level executives who have a wider area of discretion in making decisions that affect the firm.