Which of the following is normally seen as an advantage associated with long-term incentives plans?

A) They may encourage a better understanding of the business.
B) They tie rewards to the company's ability to pay.
C) They usually dilute shareholder equity for existing shareholders.
D) Goals are easy to determine,particularly in dynamic industries.

Long-Term Incentives

Compensation rewards designed to motivate and retain employees over a significant period, typically including stock options, bonuses, or profit-sharing plans.

Shareholder Equity

The owners' residual interest in the assets of a corporation after deducting liabilities, essentially representing the net value of a company to its shareholders.