Question

Which of the following statements is FALSE regarding short-term and long-term incentives?

A) Short-term incentives are usually additional salary rewards that an employee can receive on a quarterly or yearly basis.

B) Short-term incentives are based on meeting short-run objectives such as a quarterly sales or a production goal.

C) Long-term rewards focus on future profitability.

D) Stock options are a common short-term incentive.

E) Long-term incentives are usually best for upper-level executives who have a wider area of discretion in making decisions that affect the firm.

Answer

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