One Way of the Best Ways to Impact How Employees

question 19

Multiple Choice

One way of the best ways to impact how employees view executive compensation is to:

• A) offer executives lump sum merit bonuses rather than an annual merit increase.
• B) have the executives be paid as part of a commission program.
• C) link executive compensation directly to the organization's performance.
• D) give executives spot awards in front of other employees.
• E) require executives to participate in a Scanlon Plan.

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Definitions:

Maximum Level of Sales

The highest amount of sales a company can achieve with its current resources and capacity before needing to expand.

Debt-Equity Ratio

A metric used to evaluate the proportional use of equity and debt in the financing of company assets.

Current Level of Inventory

Represents the quantity of goods or materials on hand at a given time within a business.

Financial Plan

An in-depth analysis of a person's present and potential financial condition, utilizing existing data to forecast future earnings, the value of assets, and strategies for withdrawals.