A Basic Principle of Organizational Compensation Practices Is That Compensation

question 194

Multiple Choice

A basic principle of organizational compensation practices is that compensation should:

• A)be kept separate from union contract issues.
• B)focus primarily on seniority.
• C)support organizational strategy by rewarding behaviors the organization values.
• D)be kept lower than industry standards to increase cost savings.

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Definitions:

Compounded Monthly

Interest calculation on a loan or investment where the interest is added to the principal each month, so that each subsequent interest calculation is on a higher amount.

Mortgage

A loan used to purchase or maintain a home, land, or other types of real estate where the borrower agrees to pay back the loan over a specified time, typically with interest.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal amount.

APR

APR, or Annual Percentage Rate, is the annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs associated with the transaction.