Each of your individual organizations has policies for capital budgeting and capital rationing. Research your organization to determine what methods it uses and the various techniques that it employs to select capital projects. b. Over the past few years, there has been a growing trend in performance-based compensation for senior executives. Many of these incentives have included the use of stock options. Many individuals feel that these options should be expensed as a cost of doing business. Answer the following questions: i. Do you feel that these types of incentives should be used for executive compensation? ii. Are there better methods for compensation? iii. Should these options be expensed to the business? iv. What happens when executive compensation grows excessively high with these methods while the company continues to eliminate its employee base?
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