Which of the Following Statements Best Describes the Context of Compensation

question 21

Multiple Choice

Which of the following statements best describes the context of compensation management within a firm?

• A) All organizations need a human resources department to deal with compensation issues.
• B) The larger the firm, the greater the need for compensation specialists.
• C) In smaller organizations, compensation consulting firms are responsible for compensation strategy.
• D) Within a large firm, all managers require extensive knowledge of compensation.

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Definitions:

Working Capital

The disparity between an organization's immediate assets and liabilities, showcasing its short-term economic viability and effectiveness.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Withdraw

The act of removing funds from an account, typically from a bank or investment.

Investment

Allocation of resources, usually money, into a vehicle expected to generate income or profit, such as stocks, bonds, or real estate.