For early stage ventures,which of the following is a strong reason for having an equity component in employee compensation?
A) the expected deferred and tax-preferred compensation allows the venture to pay a lower current compensation to employees
B) as a way to motivate employees to strive for the same goal of high equity value
C) because any dividends received as part of the equity compensation reduces taxable income
D) both a and b
E) all of the above
Correct Answer:
Verified
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