US firms are more likely to operate on the equity principle than firms in any other country.

Question

Quizplus · Accepted Answer

US firms have historically placed a greater emphasis on equity-based compensation and ownership arrangements than firms in other countries, such as those in Europe or Asia. This can be attributed to a variety of factors, including the influence of American capitalism and the relatively high valuation of stock options in the US economy.

US Firms Are More Likely to Operate on the Equity