Which of the Following Is a Disadvantage of Individualized Incentive

question 11

Multiple Choice

Which of the following is a disadvantage of individualized incentive plans?

• A)more direct supervision is required to maintain reasonable levels of output
• B)earnings of workers are reduced
• C)costing and budgetary control are impeded
• D)levels of mistrust between managers and workers are elevated
• E)production costs are raised

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Definitions:

Noncorporate Business Organization

Any form of business entity that is not incorporated, such as partnerships, sole proprietorships, and limited liability companies, where the legal and tax characteristics may differ from those of corporations.

Separate Taxable Entity

An entity that is recognized as separate from its owners for tax purposes, such as a corporation, and therefore must file its own tax returns.

Ownership Interest

A portion or share in the ownership of assets, such as real estate or a company, affording the holder certain rights like income or control.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.