Which of the Following Statements Regarding Performance Incentives Is True

question 7

Multiple Choice

Which of the following statements regarding performance incentives is true?

• A)Employees tend to hold onto stock options rather than sell them.
• B)Merit pay is always a successful program because employees recognize they will be rewarded only if performance increases.
• C)Profit sharing is very effective in tying individual pay to employee effort.
• D)Companies are increasingly choosing to implement team- or group-based pay-for-performance programs over individual-based pay-for-performance programs.

---

Definitions:

Hormones

Chemical messengers secreted by glands in the body that regulate physiology and behavior, including growth, metabolism, and reproductive processes.

Bloodstream

The flowing blood within the circulatory system of the body, carrying oxygen, nutrients, and waste products to and from the cells.

Synaptic Gaps

The tiny space between neurons across which neurotransmitters travel to transmit signals from one neuron to another.

Limbic System

Neural system (including the hippocampus, amygdala, and hypothalamus) located below the cerebral hemispheres; associated with emotions and drives.