Gain-Sharing Plans Are Premised on the Assumption That

question 45

Multiple Choice

Gain-sharing plans are premised on the assumption that:

• A) all employees deserve to be rewarded
• B) costs can be reduced and productivity improved by eliminating wasted materials and labor, developing new or better products, or working smarter
• C) if top management is highly motivated to succeed, then the organization will naturally follow suit
• D) performance-based pay must be closely linked with organizational strategy for the pay system to be effective
• E) positive reinforcement is superior to negative reinforcement

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Definitions:

Cash Advance

A short-term loan or credit card feature allowing individuals to withdraw cash up to a certain limit, often subject to high interest rates and fees.

Exporter

A person, company, or country that sells goods or services to buyers in another country.

Open Account Agreement

A financial arrangement between two parties allowing for the buying and selling of goods and services on credit, without requiring prepayment.

Unfavorable Balance

A situation where a financial balance, such as trade balance or budget, is negative, indicating more outflows than inflows.