You Have Been Asked to Develop an Effective Reward System

question 176

Multiple Choice

You have been asked to develop an effective reward system for Kroger stores. In designing such a system, you should strive to meet all of the following objectives except

• A) enabling employees to satisfy their basic needs.
• B) providing rewards comparable to those offered by other firms.
• C) distributing rewards fairly within the organization.
• D) recognizing that different people have different needs.
• E) maximizing the amount spent on compensation.

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Definitions:

Equity Hedge Funds

Hedge funds that primarily invest in stocks in order to gain from an expected increase in equity prices.

Systematic Risk

The inherent risk that affects the entire market or market segment, often referred to as market risk or un-diversifiable risk.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of financial markets.

High Water Mark

A clause in fund management contracts that prevents fund managers from receiving large bonuses for poor performance, ensuring they only earn a performance fee when the fund's value exceeds its previous highest value.