Most Short Term Incentives for Executives Tend to Be Based

question 27

Multiple Choice

Most short term incentives for executives tend to be based on _______,while long term incentives are usually based on _________.

• A)Bonuses; stock ownership
• B)Stock ownership; bonuses
• C)Bonuses; merit pay
• D)Commissions; stock ownership
• E)Merit pay; gainsharing

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Definitions:

Investing Activity

Investing activity refers to the purchase or sale of long-term assets and investments, reflecting a company’s spending on acquiring and disposing of long-term assets.

Financing Activity

Transactions involving the flow of cash between a company and its owners, investors, or creditors, excluding operational and investing activities.

Statement of Cash Flows

A ledger statement which outlines how modifications in balance sheet accounts and revenue streams influence cash and cash equivalents, with the analysis broken down by operating, investing, and financing operations.

Parentheses

Punctuation marks used in writing to enclose additional information or clarify something without interrupting the main text.