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When business strategies change, pay systems should remain the same.
Maximum Rate of Growth
The highest possible expansion rate that a business can achieve without obtaining additional financing from external sources.
Sustainable Rate Of Growth
The maximum rate at which a company can grow its revenues without needing to obtain additional financing.
Profit Margin
A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, representing the proportion of sales that turns into profit.
Dividend Payout Ratio
The percentage of earnings paid to shareholders in dividends, calculated by dividing the total dividends by the net income for the same period.
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