Long-Term Variable Pay Plans Provide Employees Ownership Opportunities as the Value

question 8

Multiple Choice

Long-term variable pay plans provide employees ownership opportunities as the value of the organization increases are applicable only in the _____.

• A) public sector
• B) private sector
• C) technology sector
• D) none of these

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Definitions:

Straight-line Depreciation

A method for dispersing the cost of a physical asset across its useful life in even annual allocations.

Discounted Payback

A capital budgeting method used to determine the profitability of an investment by calculating the time it takes for the present value of cash flows to cover the initial investment cost.

Annual Cash Flows

The total amount of money being transferred in and out of a business, considered on a yearly basis.

Required Rate

The minimum return an investor expects to achieve on an investment, considering its risk, also known as the hurdle rate or the required rate of return.