Why Do Organizations Use Pay Grades

question 23

Multiple Choice

Why do organizations use pay grades?

• A)to group individual jobs having approximately the same job worth
• B)to insure against pay differentials based on sex or race
• C)to compare similar jobs across a variety of organizations
• D)to develop a pay structure that is based on market rates

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Definitions:

Stated Interest

The annual interest rate declared on a financial instrument, such as a loan or bond, not accounting for compounding or fees.

Pure Discount Loan

A loan where the borrower receives an amount less than the principal value and repays the principal amount at maturity with no additional interest.

Single Lump Sum

A one-time payment of money, opposed to a series of payments made over time. This term is often used in finance for describing investments or payouts.

Future

A financial contract obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.