Which of the Following Is Not a Condition Needed for the Success

question 18

Multiple Choice

Which of the following is not a condition needed for the success of gain-sharing plans?

• A) trust between management and employees
• B) a history of job security
• C) a joint employee-management gain sharing committee
• D) system seen as fair and equitable

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Definitions:

High Credit Risk

Indicates a borrower who presents a higher chance of defaulting on a loan due to financial instability or poor credit history.

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and is repaid to the investor.

Interest Rate

The cost of borrowing money or the return earned on an investment, usually expressed as a percentage of the principal.

Equity Financing

The method of raising capital through the sale of shares in a company, which gives shareholders ownership rights.