Senior Management in Your Organization Wants You to Explain to the Board

question 26

Multiple Choice

Senior management in your organization wants you to explain to the board of directors the key concept that makes compensation systems work.It would be correct to tell them that the ideal compensation system must

• A) keep labor costs as low as possible.
• B) provide for employees needs while keeping labor costs within reasonable limits.
• C) pay the highest wages in the industry.
• D) encourage employees to work for as little as possible to keep company profits as high as possible.
• E) focus attention on benefits rather than on salaries,which are kept low on purpose.

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Definitions:

Types of Fraud

Categories of deceitful activities intended to gain dishonest advantages, often financial in nature.

Effect

The result or outcome of a particular cause or action.

Fraudulent Misrepresentation

The act of deliberately misleading or deceiving another party with false statements or information, leading to their detriment on reliance of such misrepresentation.

Economic Duress

A situation where one party is forced into a contract or agreement under threats, making the consent given not truly voluntary.