The Aim of Executive Compensations Is To

question 3

Multiple Choice

The aim of executive compensations is to:

• A) Enrich the executive
• B) Align the goals of the executive with the workers
• C) Align the goals of the executive with the shareholders
• D) Enrich the company

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Definitions:

Miller-Orr Model

A financial model used to manage cash flow and determine optimal cash reserves for a company.

Optimal Upper Cash Limit

The maximum amount of cash a company determines is efficient to hold in reserve for covering transaction costs and contingencies.

Disbursements

Payments made by a business, often involving the outflow of cash for expenses or investments.

Weekly Interest Rate

The interest rate applied to a loan or savings, calculated and compounded on a weekly basis.