XYZ IncPursues a Low-Cost Strategy in Its Industry and Generally Needs

question 19

Multiple Choice

XYZ Inc.pursues a low-cost strategy in its industry and generally needs lower skilled employees.As a result,their management team decided to establish a compensation policy that pays less than the marketplace.In recent years,the company became susceptible to labor shortages and high turnover.What kind of pay level policy does XYZ Inc.follow?

• A)market match
• B)market lag
• C)market lead
• D)market pay line

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Definitions:

NPV

Net Present Value, a calculation used to assess the profitability of an investment, representing the difference between the present value of cash inflows and outflows over a period of time.

Market Size

An estimation of the total volume of goods or services that is available for purchase within a specific market.

Crystal Ball

A software package used for risk analysis and simulation in Microsoft Excel.

Extract Data

The process of retrieving data from a database, document, or file for further use or analysis.