In the Context of Compensation, Which of the Following Statements

question 64

Multiple Choice

In the context of compensation, which of the following statements is true of external inequity?

• A) It occurs when lower-level employees in a firm receive fewer incentives than the top executives.
• B) Overpaying individuals for the value of their contributions can effectively solve external equity issues.
• C) Problems with external equity may result in dissatisfied and unhappy workers.
• D) The most commonly used source of information concerning external equity is job evaluation.

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Definitions:

Balance Sheet

is a financial statement that provides a snapshot of a company's financial condition at a specific time, detailing assets, liabilities, and owners' equity.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership's stake.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Initial Investment

The amount of money used to start a venture, purchase assets, or establish the financial foundation of a business.