The Giant Company Is Concerned About Controlling Labor Costs Without

question 177

Multiple Choice

The Giant Company is concerned about controlling labor costs without diminishing its employees' incentive to work harder. The Giant Company should adopt a ____ strategy.

• A) productivity-reward
• B) cost-of-living
• C) performance-reward
• D) pay-for-performance
• E) static-salary

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Definitions:

Liquidity

A measure of a company's ability to pay off its short-term liabilities with its available cash and quick assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.

Operating Cycle

The average period of time it takes for a business to convert its inventory into cash through sales.

Twelve Months

A term commonly used in finance and business to refer to a full fiscal or calendar year.