There May Be More Opportunities for Advancement with Skill-Based Pay

question 18

Multiple Choice

There may be more opportunities for advancement with skill-based pay plans than with job-based pay plans because of

• A)less bureaucracy.
• B)the lack of job evaluation.
• C)higher base pay.
• D)exposure to multiple jobs requiring multiple competencies.
• E)the emphasis on years of experience.

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Definitions:

Bond Amortization

The gradual reduction of the bond discount or premium over the life of the bond, affecting the bond's book value and interest expense calculations.

Effective-Interest Method

A method of calculating the amortized cost of a bond or loan by applying the effective interest rate to the outstanding balance at each period.

Private Companies

Privately held entities that are owned by individual investors, families, or a small group of shareholders, not available for public trading.

Market Interest Rate

The prevailing rate of interest available in the market for securities of similar risk and maturity.