Which of the Following Statements Regarding Incentive Systems Is FALSE

question 196

Multiple Choice

Which of the following statements regarding incentive systems is FALSE?

• A) Bonuses are often used to reward employees.
• B) Nearly all U.S. manufacturing firms use incentive systems based on individual or group productivity.
• C) Employee bonuses are sometimes received in the form of stock ownership or stock options.
• D) The Scanlon plan is a form of profit sharing that rewards employees for improvements made in an organization's performance.
• E) Increasing use of cross-training has led to increasing use of knowledge-based pay systems.

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Definitions:

Total NCI

Refers to the Total Non-Controlling Interest in a company, representing the equity in a subsidiary not attributable directly or indirectly to the parent company.

Parent Ltd

A corporation that holds a controlling interest in one or more other companies, also referred to as subsidiaries.

Indirect NCI

Non-controlling interest (NCI) that is not directly held by another entity but is held through one or more intermediaries.

Pre-acquisition Equity

The equity value of a company before it is acquired by another firm, used to assess the financial position prior to the acquisition.