Which Term Refers to a Bonus Given to Executives That

question 93

Multiple Choice

Which term refers to a bonus given to executives that is proportional to the change in company stock prices,rather than changes in profitability measures?

• A) Stock appreciation rights
• B) Performance plan units
• C) Performance share plans
• D) Phantom stock

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Definitions:

Maturity Date

The specific date on which the principal amount of a financial instrument is to be paid back in full.

Bond Ratings

Evaluations of the credit quality and risk of default of a bond, issued by rating agencies, influencing interest rates and investor demand.

Financial Obligation

A legal responsibility to settle a debt or pay for a service or product that has been received.

Registered Securities

Securities with which the issuer or a transfer agent keeps a list of the names of owners. Dividends or interest payments are made to owners of record as of specified dates.