Variable Pay

question 112

Multiple Choice

Variable pay:

• A)shifts some monetary risk from the employee to the company.
• B)is being much more closely managed by companies since the recession of 2007 and 2008.
• C)even when structured correctly,rarely improves employee motivation and satisfaction.
• D)appears to be shrinking as a percentage of overall compensation over the past ten years.
• E)minimizes the flexibility in company compensation systems.

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Definitions:

Stated Rate

The annual interest rate declared on a financial instrument, such as a bond, without accounting for compounding within the year.

Rate Of Return

The accrual or diminishment of value in an investment over a specific epoch, visualized as a percentage of the investment’s inaugural cost.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.

Annually

A term describing an event or calculation made once every year.