When an Entrepreneur Specifies That Rewards and Bonuses Be Linked

question 3

Multiple Choice

When an entrepreneur specifies that rewards and bonuses be linked to profits and performance of both the individual and the company, a/an ____ is in place. ​

• A)annual bonus
• B)deferred compensation plan
• C)profit sharing plan
• D)common stock plan
• E)capital appreciation plan

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Definitions:

Differential Cost

The cost difference between two alternative decisions.

Model 240

A specific version or design of a product, indicated by the model number 240.

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product.

Production Increase

An uptick in the amount of products manufactured by a company over a set period.