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

question 5

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.Which 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:

Stock C

This term is not specific; it might be a placeholder name for a hypothetical or specific stock used for analysis.

Beta

A measure of a stock's volatility in relation to the overall market; it indicates the tendency of a stock's returns to respond to swings in the market.

Portfolio

A group of investment assets held by either a person or a corporate entity.

Stock Y

A placeholder name typically used to represent a generic or hypothetical stock or equity investment in examples or discussions.