Which Method of Matching Rewards to the Accomplishment of Strategic

question 103

Multiple Choice

Which method of matching rewards to the accomplishment of strategic objectives compensates managers for achieving objectives set over a multi-year period?

• A) strategic-funds method
• B) segmentation method
• C) long-term evaluation method
• D) individual evaluation method
• E) weighted-factor method

---

Definitions:

Market Value

The prevailing market rate at which a service or asset is available for purchase or sale.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporate charter, which may differ significantly from the market value.

Paid-in Capital

The amount of money that a company receives from selling its shares directly to investors, not including the stock value on secondary markets.

Par Preferred Stock

A type of preferred stock with a nominal face value, which determines dividend payments and is prioritized over common stock in the event of liquidation.