Elements of the Compensation Package Are Said to Have _____

question 91

Multiple Choice

Elements of the compensation package are said to have _____ when an employee's high performance leads to monetary rewards that are valued.

• A)validity
• B)consistency
• C)instrumentality
• D)reliability

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Definitions:

IRR

Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of cash flows from a particular project equal to zero.

Cash Flows

The sum of all money movements into and out of a corporation, directly impacting its immediate financial health.

Required Rate

The least annual percentage gain that entices investors, be they individuals or companies, into a certain security or project.

Discounted Payback Period

The time period needed to recover the cost of an investment when considering the time value of money through discounted cash flows.