Mastery Quiz: Sweat Equity vs Cash Compensation

Which of the following statements is true? (Select the best answer)

The lower percentage a person’s compensation is in some form of options, the more they are aligned and committed to building a successful company

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The higher percentage a person’s compensation is in some form of options, the less they are aligned and committed to building a successful company

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The higher percentage a person’s compensation is in some form of options, the more they are aligned and committed to building a successful company

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None of the above are true

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Which is the best definition of “stock option? (Select the best option)

The option to buy a certain number of company shares in the future at the price established today.

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The option to buy a certain number of company shares in the future at the market price when the option is exercised.

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The option to buy a certain number of company shares today but not at a later date.

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Sweat equity is equity earned in exchange for a team member’s time and talent.

True

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False

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