After Freezing Salaries for Three Years, Solo Music Publishers Determined

question 26

Multiple Choice

After freezing salaries for three years, Solo Music Publishers determined that employees with two to three years of experience were leaving Solo because other employers were offering higher salaries.Which of the following is a step that Solo can take to reduce pay inequities?

• A) Benchmark against local and national markets
• B) Base pay on the longevity of the employee's association with the company
• C) Exclude benefits and other items from the total pay package
• D) Base pay on the age of the employee

---

Definitions:

Minimum Required Rate

Typically refers to the minimum rate of return on an investment that a manager or investor deems acceptable, taking into account risk and alternative investments.

Residual Income

The amount of income that an individual or company has after all personal debts and expenses, including the cost of capital, have been paid.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the benefit (or return) of an investment by its cost.

Investment Opportunity

An asset or item that presents a potential for profitable returns, as in interest, income, or appreciation in value.