Which of the following is an issue related to executive compensation?
A. Little or no relationship seems to exist between the performance of an organization and the compensation paid to its senior executives.
B. Most senior executives are exempt from the perquisites provided by an organization to its employees.
C. Executive compensation in the United States is far lower than that paid to senior executives in other countries.
D. Executive compensation only involves incentive pay, which is based on the years of service in an organization and commission from the clients brought to it.
Answer: A
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Sofranko Corporation purchased 8,000 shares of Bussey Corporation common stock for $80 per share on January 1, 2014. Bussey reported net income of $240,000 for 2014 and paid dividends of $84,000 during 2014. As of December 31, 2014, the market value of Bussey Corporation common stock was $80 per share. Assuming the shares owned by Sofranko represent 10 percent of the total outstanding stock of
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