Which of the Following Is a Disadvantage of Incentive Compensation

question 19

Multiple Choice

Which of the following is a disadvantage of incentive compensation plans?

• A) Employees know that a rise in productivity will have no impact on their compensation.
• B) Employees are taxed heavily on their income from incentive plans.
• C) Employers are taxed heavily on their expenditure incurred through incentive plans.
• D) Employees don't develop loyalty to their employers when incentive plans are practiced.
• E) Employers are unable to increase employee productivity while following incentive plans.

---

Definitions:

Hyaline

A type of smooth, translucent cartilage found in various parts of the body such as the nose, trachea, and larynx, providing support with some flexibility.

Elastic Fiber

Protein fibers found in the extracellular matrix of connective tissue, giving elasticity and resilience to tissues like skin, lungs, and blood vessels.

Irregular Bone

Bones characterized by their complex shapes, such as vertebrae and certain skull bones, serving various protective and supportive roles.