Which of the Following Is NOT True for Internally Consistent

question 5

Multiple Choice

Which of the following is NOT true for internally consistent compensation systems?

• A)Jobs that require higher qualifications and more responsibilities should be paid more than jobs that require lower qualifications and fewer responsibilities.
• B)Internally consistent compensation systems are created through job analysis and job evaluation.
• C)Internally consistent compensation systems may increase a company's flexibility to respond to changes in competitor's pay practices.
• D)Internally consistent compensation structures result in bureaucracy.

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Definitions:

Bond Issue

A Bond Issue is the process by which a borrower issues bonds to lenders or investors as a form of debt financing, promising to repay the principal along with interest at a future date.

Common Stock

A type of equity security representing ownership in a corporation, with holders possibly entitled to vote on corporate matters and receive dividends.

Shares Outstanding

The total number of shares of a corporation that have been issued and are currently owned by shareholders.

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate for the risk they take by investing in the stock.