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1. Most executive compensation plans link bonus awards to one or more ________ preformance measures.
a. non-accounting based
b. accounting-based
c. marketing-based
d. management-based
2. A compensation committee should be comprised of:
a. the CEO and the CFO of the company
b. the CEO of the company and the outside attorney
c. members of the Board of Directors who are also officers of the company
d. members of the Board of Directors who are outside (non-management) directors
3. Which of the following is NOT an example of a negative covenant provision?
a. Limits on capital expenditures
b. Limits on the borrower's total indebtedness
c. Limits the use of the loan to an agreed-upon purpose
d. Restricts the payment of cash dividends.
Actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would
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