Kolese Inc.,a manufacturing company,includes stock options and stock purchase plans.Executives at the company will want to do what is best for Kolese because that will cause the value of the stock to grow.Which of the following is being exemplified in this scenario?
A) Scanlon plan
B) Balanced scorecard
C) Long-term incentive
D) Merit plan
E) Short-term incentive

Question

Quizplus · Accepted Answer

Long-term incentives include stock options and stock purchase plans. The rationale for these long-term incentives is that executives will want to do what is best for an organization because that will cause the value of their stock to grow. This scenario exemplifies long-term incentives.