Which of the Following Is Not a Purpose of Equity-Based

question 78

Multiple Choice

Which of the following is not a purpose of equity-based compensation?

• A) Provide both risk and incentives to employees.
• B) Motivate employees by aligning employee and employer incentives.
• C) Avoid compensation limits for certain publicly traded company executives.
• D) Provides a low or no cost form of compensation.

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Definitions:

Account Surpluses

Refers to the positive balance of the funds in an account, or situations where revenues exceed the expenditures in fiscal accounts.

Trade Deficit

A situation where a country imports more goods and services than it exports.

Exchange Rate

The price of one currency in terms of another for conversion purposes.

Yuan

The official currency of the People's Republic of China.