Lump Sum Merit Increases Can Be a More Significant Motivator

question 60

True/False

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically someone entrusted with the care of money or property.

Breach of Contract

The violation or failure to perform any term of a contract without a legitimate legal excuse.

Watered Shares

Shares that have been issued by a company at a value much greater than its actual asset value, leading to an inflation of the company's apparent worth.

Par Value

The face value of a bond or stock as stated by the issuer, which has little relation to its market price.