Scenario 9.1 Denton and Denton Inc. (D&D Inc.)is a Small Graphic Design

question 67

Multiple Choice

Scenario 9.1
Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the USA. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.
-Refer to Scenario 9.1. Which of the following is NOT a benefit of competence-based pay system?

• A) greater productivity
• B) decreased compensation costs
• C) improved staffing flexibility to meet production or service demands
• D) reduced effects of absenteeism and turnover

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Definitions:

Long-Term Debt

Financial obligations of a borrowing entity that are due for repayment in more than one year's time.

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Income generated from investments that provide a constant amount of money at regular intervals.

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