With _____, High Performers Earn More but No Permanent Adjustment

question 32

Multiple Choice

With _____, high performers earn more but no permanent adjustment is made to an employee's base pay.

• A) incentive pay
• B) equity pay
• C) fixed earnings
• D) retained earnings
• E) merit pay

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Definitions:

Liquidation Preference

A term in a contract that stipulates the order in which shareholders are paid out in the event of a liquidation or exit.

Preferred Stock

A class of shares that offer their holders preferential rights to dividends and asset distribution over common stockholders, often without voting rights.

Treasury Shares

Shares of a company's own stock that it has reacquired and holds, which do not carry voting rights or pay dividends.

Authorized

Officially given a right or power to do something or the condition of having official permission.