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Which of the following is not a problem with using stock-based incentives for low level employees? A. Stock-based compensation increases the perceived risk of the

Which of the following is not a problem with using stock-based incentives for low level employees?

A.

Stock-based compensation increases the perceived risk of the compensation and therefore increases the amount of compensation needed to motivate employee effort.

B.

Stock-based compensation is not very controllable for low-level managers who have little decision authority.

C.

Stock-based compensation enhances long-term thinking.

D.

Stock-based compensation dilutes the ownership interest of non-employee shareholders.

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