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

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Definitions:

Secondary Sexual Characteristics

The physical traits that emerge during puberty which are not directly involved in reproduction but distinguish the two sexes, such as breast development in females and facial hair in males.

Primary Sexual Characteristics

The biological and physical characteristics present at birth that are directly involved in reproduction, such as the ovaries in females and testes in males.

Tertiary Sexual Characteristics

Traits influenced by hormones that differentiate between sexes but are not directly part of the reproductive system, often developing during puberty.

Object Permanence

The realization by infants that objects still exist even when they are out of sight, sound, or touch.