Kokan Inc., a marketing company, includes stock options and stock purchase plans in executive pay. Executives at the company will want to do what is best for Kokan because that will cause the value of the stock to grow. What is being exemplified in this scenario?
A) Scanlon plan
B) balanced scorecard
C) long-term incentives
D) merit plan
E) short-term incentives

Question

Quizplus · Accepted Answer

The scenario is exemplifying long-term incentives, as executives are given stock options and stock purchase plans as a part of their pay, which motivates them to work towards the long-term growth and success of the company.

Kokan Inc, a Marketing Company, Includes Stock Options and Stock Purchase