Which of the Following Statements Is TRUE About Administering Employee

question 79

Multiple Choice

Which of the following statements is TRUE about administering employee compensation?

• A) Fixed cash compensation for work, independent of the number of hours worked, is termed as wages.
• B) Cash payment based on an employee's unit of output is called salary.
• C) Labor-Management Relations Act sets specific guidelines that employers must follow when administering salaries and wages.
• D) Compensation comprises of direct payments such as wages or salary, and excludes indirect payments through employee benefits.
• E) Compensation is dictated by prevailing conditions in the job market and the value each employee brings to the organization.

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Definitions:

Output Effect

A phenomenon where changes in price level influence the quantity of goods and services produced in an economy due to the alteration in profitability of goods sold.

Price Effect

The impact on consumer demand or supply of goods due to changes in the price of those goods or related goods.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

Oligopoly

A market structure characterized by a small number of firms whose decisions affect and are affected by each other.