In an Organization, Which of the Following Functions of Compensation

question 24

Multiple Choice

In an organization, which of the following functions of compensation serves to indicate to employees what is important to focus on by paying for certain kinds of activities or behaviors?

• A) Workload reduction
• B) Equity
• C) Market benchmarking
• D) Signaling

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Definitions:

Generate Losses

To incur negative financial results, typically by spending more than is earned or received in revenue.

Capital Market

A financial market in which long-term debt and equity-backed securities are bought and sold, serving as a platform for raising long-term funds.

Present Value

The present value of a future amount of money or series of payments, calculated using a predetermined interest rate.

Market Value

The market price at which you can currently trade a service or asset.