Which of the Following Is NOT a Reason Given by Organizations

question 25

Multiple Choice

Which of the following is NOT a reason given by organizations for implementing incentive plans?

• A) to improve or maintain high levels of productivity
• B) to focus employee efforts on specific performance targets
• C) to link compensation rewards to the achievement of results
• D) to increase employee benefits

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Definitions:

Block Pricing Scheme

A pricing strategy where different quantities of a product or service are sold at different prices, typically decreasing with volume.

Marginal Cost

The increased cost resulting from the production of an extra unit of a product or service.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Demand Curves

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.