Frequently Companies So Not Change Their Compensation to Match Changes

question 65

True/False

Frequently companies so not change their compensation to match changes in their strategies.

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Franchise

A type of license that grants a franchisee access to a franchisor's proprietary knowledge, processes, and trademarks, to allow the party to sell a product or provide a service under the business's name.

Reverse Stock Split

When the number of outstanding shares is reduced and the market price per share is increased; as the price per share increases, the investor perceives that the stock is worth more.

Outstanding Shares

The total number of all shares issued to investors by a corporation.