Which Compensation Strategy Requires a Common Framework but Not a One-Size-Fits-All

question 40

Multiple Choice

Which compensation strategy requires a common framework but not a one-size-fits-all solution?

• A) a progressive strategy
• B) a lag strategy
• C) a lead strategy
• D) a global strategy
• E) a match strategy

---

Definitions:

Cognitive limitations

The restrictions inherent in an individual's cognitive capacity, affecting their ability to process and understand information.

Information-processing

Refers to the series of actions or steps taken in order to receive, perceive, and interpret information from the environment.

Classical decision theory

A framework that assumes decision-makers are fully rational and seek to maximize utility or profit when making choices.

Enterprise risk management

A comprehensive framework for identifying, assessing, managing, and monitoring the risks that an organization faces to maximize value.