AirCar LLC, a Producer of Consumer Electronics, Used Gainsharing to Compensate

question 39

Multiple Choice

AirCar LLC, a producer of consumer electronics, used gainsharing to compensate its employees. However, after a change in management, the company decides to replace gainsharing with a stock option plan. Which of the following statements is true of AirCar LLC?

• A) It used to provide individual incentives, but now it provides organizational incentives.
• B) It used to provide individual incentives, but now it provides team incentives.
• C) It used to provide team incentives, but now it provides organizational incentives.
• D) It used to provide organizational incentives, but now it provides individual incentives.

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Definitions:

General Welfare

The overall health, prosperity, and contentment of a community or nation, often considered a government's primary goal.

Private Producers

Individuals or companies that produce goods or services in an economy that are not owned by the state.

Taxpayer

An individual or entity that is obligated to make payments to a governmental authority, usually in the form of taxes on income, property, or purchases.

Invisible Hand

A metaphor used by Adam Smith to describe the self-regulating nature of the market, where individual self-interest promotes societal benefit.