For Early Stage Ventures,which of the Following Is a Strong

question 8

Multiple Choice

For early stage ventures,which of the following is a strong reason for having an equity component in employee compensation?

• A)the expected deferred and tax-preferred compensation allows the venture to pay a lower current compensation to employees
• B)as a way to motivate employees to strive for the same goal of high equity value
• C)because any dividends received as part of the equity compensation reduces taxable income
• D)both a and b
• E)all of the above