Explain the Three Reasons Why Companies Often Choose Not to Develop

question 29

Essay

Explain the three reasons why companies often choose not to develop their own compensation surveys rather than use established surveys.

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Definitions:

High-Dividend Payout

A company's policy or practice of distributing a large portion of its profits to shareholders in the form of dividends.

Tax Exemption

A portion of income or transaction that is free from tax by law, reducing the taxable income or value.

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits to its shareholders at regular intervals.

Date of Record

The specific date on which a company determines its shareholders' eligibility to receive dividends or share distributions.