Which of the Following Is True of an Executive Compensation

question 51

Multiple Choice

Which of the following is true of an executive compensation plan?

• A) The compensation paid to the executives should be linked only to the financial performance of the company.
• B) Most compensation plans are two parts: salary and health plan
• C) It does not help balancing risk with short-run and long-run incentives.
• D) It includes salary, annual incentive compensation, and benefits such as medical benefits, pension plans, and life insurance.

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Definitions:

Demand For German Goods

The desire or need for products made in Germany by consumers both within the country and internationally.

U.S. Current Account Deficit

A measurement of the country’s international trade where the value of the goods and services it imports exceeds the value of the products it exports.

Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, historically used by various countries.

Monetary Policy

The process by which the monetary authority of a country, like the central bank, controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.