Which of the Following Is an Advantage of Using the Balance

question 34

Multiple Choice

Which of the following is an advantage of using the balance sheet approach of compensation? 

• A) It does not create disparity in pay between expatriates and HCNs. 
• B) It creates less fluctuation between overseas and parent country pay during repatriation. 
• C) It is organizationally less complex to administer. 
• D) It is the cheapest method of managerial compensation for expatriation.

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Definitions:

Need-Based Theories

Psychological theories that focus on understanding human needs and how they influence behavior, particularly in the context of motivation.

Agency Theory

An economic theory that examines the relationship between principals (owners) and agents (executives), focusing on the conflicts of interest that may arise.

Agents

Individuals or entities authorized to act on behalf of others, in business or legal affairs, to achieve specified goals.

Information

Data processed, organized, or structured in a way that gives it context and relevance, allowing for decision-making.