Which of the Following Is a Disadvantage of the Individual

question 97

Multiple Choice

Which of the following is a disadvantage of the individual incentive system?

• A) The net result is typically less than optimal for the competing individual.
• B) Employees may primarily focus on what is best for them personally.
• C) This system can be used only for providing monetary incentives.
• D) This system does not include any form of bonus.

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Definitions:

Working Capital

Refers to the difference between a company's current assets and current liabilities, indicating its short-term liquidity and ability to fund its operations.

Financial Data

Information related to money matters of a company, including its revenue, expenses, profits, and losses.

Sales On Account

Transactions where goods or services are sold with payment to be received at a later date, typically recorded as accounts receivable on the balance sheet.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period.