Why Do You Think Many Companies Compensate Executives with Options

question 47

Essay

Why do you think many companies compensate executives with options based on long-term increases in the value of the company's stock?

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Definitions:

Tax Per Unit

Tax per unit is a fixed amount of tax applied to a product or service, regardless of its price, which directly affects the supply curve by increasing production costs.

Tax Levied

The process of imposing a tax by a governing authority on the citizens and organizations.

Buyers And Sellers

Participants in a market where buyers exchange money for goods or services from sellers, creating economic transactions.

Deadweight Loss

The loss of economic efficiency that occurs when the equitable balance of supply and demand is not achieved due to market distortion.