Hierarchical Pay Structure Is Different from Egalitarian Pay Structure in That

question 49

Multiple Choice

Hierarchical pay structure is different from egalitarian pay structure in that:

• A)the pay differentials between the levels in a hierarchical pay structure are small.
• B)the job structure in a hierarchical pay structure has fewer levels.
• C)hierarchical pay structure encourages employees to expect equal treatment irrespective of performance.
• D)hierarchical pay structure places greater emphasis on individual performance than team performance.
• E)hierarchical pay structure supports a fit that is loosely coupled.

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Definitions:

Contributed Capital

Funds raised by a company through the issuance of shares to investors, representing the stockholders' equity apart from retained earnings.

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders, often used for reinvestment in the business or to pay down debt.

Small Stock Dividend

A dividend payment made in the form of additional shares, typically less than 25% of the existing shares.

Retained Earnings

The cumulative amount of net income kept in the company after dividends are paid and not distributed to shareholders.