Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) Canadian firms spend 20 to 40% of their operating budgets on compensation.
• B) Some compensation systems serve to promote unproductive behaviour.
• C) Reward systems need to be continually evaluated.
• D) Some firms spend too little on their compensation systems.

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Definitions:

Surety

A surety involves a third party agreeing to take on the obligation of paying back a debt or performing a duty if the primary obligor fails to do so.

Creditor

A person or entity to whom money is owed by another entity, known as the debtor, for goods, services, or loans provided.

Debtor's Debt

The obligation of money owed by a debtor to a creditor.

Mechanic's Lien

A legal claim against a property by a contractor or subcontractor for unpaid labor or materials provided for improvements to the property.