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.

Question

Quizplus · Accepted Answer

Stock options are generally considered a long-term incentive, not a short-term incentive.

Which of the Following Statements Is FALSE Regarding Short-Term and Long-Term