Which of the Following Is Not True Regarding the Incentives

question 2

Multiple Choice

Which of the following is not true regarding the incentives different pay structures impose on workers?

• A) Piece rates are an option when individual output is easily measured by firms.
• B) Tournaments can elicit more effort than a time rate.
• C) Worker effort can be a function of the pay structure.
• D) Worker productivity is unrelated to the pay structure.
• E) Profit sharing is a pay structure designed to elicit more effort from workers, but it can suffer from free-riding.

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Definitions:

S-8

S-8 is a form filed with the SEC used by publicly traded companies to register securities that will be offered to employees through an employee benefit plan.

Form 8-K

A report filed by publicly traded companies to announce major events that shareholders should know about, including acquisitions, disposals, and changes in control.

Significant Events

Major occurrences that have a profound effect on a company's operations and financial statements, such as mergers, acquisitions, or natural disasters.

Securities Accounting Standards (SASs)

A set of guidelines and rules for the accounting and reporting of transactions involving securities.