Scan Master Company Has Weak Incentives and Poor Performance Pay

question 87

Multiple Choice

Scan Master Company has weak incentives and poor performance pay.what is most likely to happen to the employees?

• A)Sales,executives,and stockbrokers will have greater motivation.
• B)High performers will be motivated to stay with the organization and improve their efficiency.
• C)There is a greater chance for unintended,undesirable behavior driven by pay-linked incentives.
• D)Employees will take excessive risks for greater premium and compensation.
• E)Competitors possibly will win over high performers with stronger incentive intensity.

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Definitions:

Total Assets

Total Assets are all the assets a company owns, including cash, inventory, property, and equipment, showcasing the entity’s financial standing.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are subtracted from sales.

Inventory Turnover

A ratio indicating how often a company's inventory is sold and replaced over a period, highlighting efficiency in managing stock and sales.