What Challenges Does a Multinational Company Face in Using Performance-Based

question 42

Multiple Choice

What challenges does a multinational company face in using performance-based pay?

• A) Differences in laws, tax regulations, and cultural values all affect the applicability of performance-based pay.
• B) Any incentive system developed in the parent country would immediately become policy in the host country.
• C) Compensation for incentive systems is always paid in the currency of the host country.
• D) Stock option plans are typically more valued by employees working in host countries as they are by employees working in the parent country.
• E) Compensation for incentive systems is always paid in the currency of the parent country.

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Definitions:

Original Owner's

Pertains to the initial proprietor or founder of a business or asset.

Entrepreneurship

Risk-taking behaviour that results in new opportunities.

Economic Independence

The condition of having sufficient income or wealth to live without having to depend on support from others.

Small Business Failure Rates

The percentage of small businesses that cease operations within a certain period, often used as an indicator of the small business sector's health or economic conditions.