Examlex
All of the following are important criteria if an incentive plan is to be most effective EXCEPT:
Rate Of Return
The gain or loss of an investment over a specified period, usually expressed as a percentage of the investment's initial cost.
Invested
The act of allocating resources, usually money, into something to earn a return or achieve a financial goal.
Interest
The cost of borrowing money, typically expressed as a percentage of the principal loan amount that has to be paid to the lender over a specific period.
Compounded Annually
A method where the interest earned is added to the principal sum at the end of each year, resulting in interest being earned on interest in subsequent years.
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