A Web Design Company, Gen Max, Is Expanding Rapidly and Needs

question 287

Multiple Choice

A web design company, Gen Max, is expanding rapidly and needs to hire middle managers in a climate where first to market is an imperative. Which incentive plan for these employees would best help the firm achieve its first-to-market goal?

• A) Pay for performance
• B) Merit raises
• C) Profit-sharing
• D) Gainsharing
• E) Pay-for-knowledge

---

Definitions:

Progressive Tax

A taxation system where the tax rate increases as the taxable amount increases, typically leading to higher earners paying a larger percentage of their income than lower earners.

Tax

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Proportional

Pertaining to a relationship where quantities change at the same rate, maintaining a constant ratio.

Taxable Income

The portion of an individual's or business's income used to determine how much tax will be owed to the federal government.