Question

As a rule of thumb, how often should an entrepreneur reevaluate her compensation package?

Question 4 options:

Every month

Every 6 months

Every 12 months

Every 18 months

Answer 1

Every 12 months is incorrect on the test

Step-by-step explanation:

so Every 6 months should be the correct answer

Answer 2

12 months

Step-by-step explanation:

The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that 12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.

After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.