In the Context of Compensation, Which of the Following Statements

question 55

Multiple Choice

In the context of compensation, which of the following statements is true of internal equity?

• A) It occurs when lower-level employees in a firm receive the same incentives as the top executives.
• B) Overpaying individuals for the value of their contributions can effectively solve internal equity issues.
• C) Problems with internal equity can result in conflict, feelings of mistrust, and low morale.
• D) Much of the information concerning internal equity comes from a pay survey.