Which of the Following Is Correct with Regard to Compensation

question 115

Multiple Choice

Which of the following is correct with regard to compensation?

• A) The term "compensation" refers to a number of different elements, including base salary, incentives, bonuses, benefits, and other rewards that employees receive.
• B) There is a general consensus in society that top managers deserve the high compensation they receive because their jobs are very complex and demanding.
• C) The average hourly wage in manufacturing is lower than the average hourly wage in retailing.
• D) Job evaluation is a method for determining whether a worker in a given job should be paid a wage or a salary.
• E) All of these are correct.

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Definitions:

Sarbanes-Oxley Act

An act that criminalizes specific nonaudit services when provided by a registered accounting firm to an audit client; also increases the punishment for a number of white-collar offenses. Also known as the Public Company Accounting Reform and Investor Protection Act of 2002.

Investment Company Act

A U.S. federal law enacted in 1940 aimed at regulating investment companies to protect investors by enforcing transparency and reducing conflicts of interest.

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.

Debentures

A type of debt instrument not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.