Since Stock Prices Can Fall as Well as Rise, There

question 14

Multiple Choice

Since stock prices can fall as well as rise, there is a risk associated with respect to __________ and that risk must be considered when evaluating the motivational value of such pay systems.

• A) merit pay systems
• B) employee stock ownership plans
• C) lump sum increases
• D) lump sum payments
• E) fringe benefit systems

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