Which of the Following Statements About Earnings-At-Risk Pay Plans Is

question 61

Multiple Choice

Which of the following statements about earnings-at-risk pay plans is true?

• A) Earnings-at-risk plans involve upside risk for the employer.
• B) Earnings-at-risk plans set base pay at or above the market rate.
• C) Salespeople who work on straight commissions are paid through at earnings-at-risk plan.
• D) Earnings-at-risk plans all have caps that prevent the employer from having to pay above a certain predetermined level.
• E) Employees prefer earnings-at-risk plans to all other performance-based pay plans