What is the purpose of vesting in sweat equity agreements, Accounting Basics

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What is the purpose of vesting in sweat equity agreements

Question: As discussed in the assigned podcasts, what is the purpose of vesting in sweat equity agreements? Question options: To prevent the accumulation of unused equity To distribute equity evenly among team members To incentivize long-term commitment and performance To provide immediate ownership rights upon joining the company

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Accounting Basics: What is the purpose of vesting in sweat equity agreements

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