Objectives for a Pay Plan

question 118

Multiple Choice

Objectives for a pay plan

• A)are not needed in a performance-based plan.
• B)must be stated for a performance-based plan to work.
• C)are essential for a periodic compensation plan to be successful.
• D)are unnecessary for a merit pay plan.

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Definitions:

Probability

This refers to the likelihood of occurrence of an uncertain event, often expressed as a number between 0 and 1.

Narrowest Bell Curve

Describes a distribution with a high peak and steep sides, indicating that the data points cluster closely around the mean, showing low variability.

Large-company Stocks

Equities issued by corporations with a large market capitalization, often considered more stable investments than those of smaller companies.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount from their face value.