Which One of the Following Statements Is Correct

question 6

Multiple Choice

Which one of the following statements is correct?

• A)The shareholder-exploitation hypothesis predicts that regulatory competition will result in a race to the bottom.
• B)The cost-avoidance hypothesis predicts that regulatory competition will result in a race to the top.
• C)There is as yet no conclusive evidence as to which of the above two competing hypotheses is valid.
• D)All of the above.

---

Definitions:

Pay System Design

The process of constructing compensation structures and policies that ensure equitable and competitive salaries for employees.

Satisfaction

A state of contentment or happiness experienced when an individual's needs, desires, or expectations are fulfilled.

Direct Payments

Financial transfers from governments to individuals or organizations without the need for an intermediary process.

Indirect Payments

Financial transactions where compensation is not directly delivered from payer to recipient but through an intermediary or additional benefits, such as health insurance or retirement plans.