A Reward System in Which Employees Are Paid Yearly Bonuses

question 106

Multiple Choice

A reward system in which employees are paid yearly bonuses based on their productivity, with no increase in base salary, is called a ____ strategy.

• A) productivity-reward
• B) cost-of-living
• C) performance-reward
• D) pay-for-performance
• E) static-salary

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Definitions:

Profit Margin Component

An element of profitability that shows the relationship between a company's profits and its sales or revenue.

Return On Investment

A measure of the profitability and efficiency of an investment, calculated as the net profit from the investment divided by the cost of the investment.

Divisional Investment

Refers to the financial capital allocated to a specific division within a company to fund operations, projects, or asset acquisitions.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, comparing the gain from an investment relative to its cost.