Identify and explain the components of management compensation and the tradeoffs that compensation designers make
What will be an ideal response?
In creating management compensation plans, designers consider multiple characteristics such as fixed salary versus bonuses and the type of bonuses (cash, stock or stock options, for example). In addition, numerous design trade-offs are available such as choices related to the time horizon over which compensation is available, choosing to emphasize local versus global performance, or choosing a cooperative or a competitive incentive scheme.
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Which of the following factors are included in the rating analysis of a corporate bond?
I. the issue's indenture provisions II. the liquidity position of the issuing company III. the issuing company's relative debt burden IV. the stability of the company's earnings A) I and II only B) I, II and III only C) II, III and IV only D) I, II, III and IV
Robert, a minor, buys a stereo from Jane for $200 . State law allows a minor to disaffirm contracts within a reasonable time after turning 18 . Robert disaffirms the contract the day after turning 18 and returns the stereo
a. This contract was a valid contract, Robert cannot disaffirm. b. This contract was a voidable contract, Robert can disaffirm. c. This contract was a void contract. d. This contract was unenforceable because it needed to be in writing to be enforceable.