Which of the Following Is NOT an Advantage of an Incentive

question 65

Multiple Choice

Which of the following is NOT an advantage of an incentive pay program?

• A) Incentives focus employee efforts on specific performance targets.
• B) Incentives are a way to increase equity and justice in an organization.
• C) Incentive payouts are fixed costs linked to the achievement of results.
• D) Incentives are a means to reward or attract top performers when salary budgets are low.

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Definitions:

Periodic Cash Interest

This represents the regular interest payments that a borrower is required to make on a debt over a specified period.

Bond

A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period at a variable or fixed interest rate.

Premium

An amount paid in addition to a standard price or rate; in insurance, it's the amount paid for coverage.