External Equity in Compensation Refers to Comparisons Made by Employees

question 61

True/False

External equity in compensation refers to comparisons made by employees to other employees performing similar jobs within the same organization.

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Definitions:

Market Price

The price at which an asset or service is currently traded in the market.

Stock Repurchase

The act of a company buying back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase share value.

Retained Earnings

The part of a company's earnings that is not distributed as dividends to its shareholders but is instead reinvested or saved.

Dividend Cut

A reduction in the dividend amount paid by a corporation to its shareholders, often due to financial difficulties or the need to conserve cash.