Why Are Flexible Benefit Plans Consistent with Expectancy Theory's Thesis

question 118

Multiple Choice

Why are flexible benefit plans consistent with expectancy theory's thesis?

• A) Organizational rewards should be linked to each individual employee's goals.
• B) They make employment at firms providing such programs more attractive.
• C) They provide a suite of tangible rewards that can be offered as motivation.
• D) They allow organizations to minimize costs associated with benefits.
• E) The motivation to gain extra benefits promotes productivity.

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Definitions:

Perpetuity

A type of annuity that lasts forever, providing payments that continue indefinitely.

Yield

The income return on an investment, expressed as a percentage of the investment’s cost or current market value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often noted in years.

Yield Spread

The difference between the yields of two bonds with differing credit qualities, maturities, or issuers.