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Incentive Pay Systems Usually Fail for One or More of the Following

question 59

Multiple Choice

Incentive pay systems usually fail for one or more of the following reasons,except one.Which one?


Definitions:

Fixed Amount

A specific, unchanging quantity of something.

Diminishing Returns

An economic principle that states as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.

Negative Returns

A situation in which additional investment or effort results in a decrease in output or performance, contrary to typical expectations for growth or improvement.

Marginal Cost

The additional expenditure involved in producing one further unit of a product or service.

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