Which of the Following Is Not a Purpose of Equity-Based

question 31

Multiple Choice

Which of the following is not a purpose of equity-based compensation?

• A) Provide risk and incentives to employees.
• B) Motivate employees by aligning employee and employer incentives.
• C) Avoid compensation limits for executives.
• D) Provides a low or no cost form of compensation.

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Definitions:

Performance Goals

Targets set by individuals or teams to achieve specific achievements within a set timeframe.

Extreme Performance Pressure

Intense stress or force applied on individuals or teams to achieve extraordinary levels of output or success.

Undergraduates

Students pursuing their first cycle of higher education, typically leading to a bachelor's degree.

MBA Students

Individuals enrolled in a Master of Business Administration program, a graduate-level degree focusing on business management and operations.