Which of the Following Is NOT Likely to Help an Incentive

question 71

Multiple Choice

Which of the following is NOT likely to help an incentive plan succeed in an organization?

• A) identifying important organizational metrics that encourage employee behaviour
• B) involving employees; incentive programs should seem fair to employees
• C) finding the right incentive payout
• D) ensuring that employees believe that performance standards are unachievable

---

Definitions:

Interest Rates

The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested savings.

Net Working Capital

A financial metric that measures a company's ability to pay off its current liabilities with its current assets.

Current Liabilities

Short-term financial obligations due within one year, typically including accounts payable, short-term loans, and accrued expenses.

Prompt Payment Discount

A reduction in the amount owed by a buyer to a seller, provided the payment is made within a specified timeframe.