Which of the Following Is NOT True

question 43

Multiple Choice

Which of the following is NOT true?

• A)Greater pay dispersion is related to higher turnover among executives.
• B)Egalitarian structures are a better fit for executive groups that need to work closely as a team.
• C)Large raises with a promotion decreases effort and increases absenteeism.
• D)Employees judge the fairness of their pay structure by making multiple pay comparisons.

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Definitions:

Deferred Replacement

A decision to postpone the replacement of assets, often to manage costs or due to budget constraints, which may affect operational efficiency.

Invested Capital

Funds provided by investors or lenders used by a company to acquire or upgrade physical assets like buildings and machinery.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Residual Income

The amount of income that exceeds the minimum rate of return expected on investments or capital.