There Is a Common Concern Today That Executive Compensation in the U.S.is

question 44

Multiple Choice

There is a common concern today that executive compensation in the U.S.is:

• A)Not adequately linked to strategic performance measures.
• B)Ineffective as a performance incentive.
• C)Not properly disclosed to the IRS.
• D)Varies too greatly from industry to industry.

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Definitions:

Present Value Factors

A mathematical formula used to determine the present value of a series of future cash flows by applying a specific discount rate.

Capital Lease

A lease classified as a purchase by the lessee for accounting purposes, where the lessee essentially buys the leased asset.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term the funds necessary to lease an asset.