Which of the Following Is a Disadvantage of Income-Based Compensation

question 3

Multiple Choice

Which of the following is a disadvantage of income-based compensation for managers?

• A)It reduces operating profits in the long run.
• B)It affects the economic stability of the company.
• C)It discourages cost efficiency.
• D)It encourages dysfunctional behavior.

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Definitions:

Conflict Resolution

The process of resolving a dispute or a conflict by meeting at least some of each party's needs and addressing their interests.

Bonobos

A type of large primate that is recognized for its female-led social structure and intricate social interactions, closely resembling chimpanzees.

Frans De Waal

A Dutch primatologist and ethologist renowned for his research on the behavior and social intelligence of primates, contributing to our understanding of animal emotions and social behavior.

Bonobos

A species of great ape known for their matriarchal societies and complex social behaviors, closely related to humans and chimpanzees.