When Employees and Outsiders Consider an Organization's Compensation as Lacking

question 116

Multiple Choice

When employees and outsiders consider an organization's compensation as lacking in external equity, what is a likely outcome?

• A)lower than average turnover
• B)employees discussing their pay with other employees
• C)little effect on employee morale because internal equity is most important to employees
• D)difficulty recruiting qualified and high-demand employees

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Definitions:

IRS

The IRS (Internal Revenue Service) is the United States federal agency responsible for collecting taxes and administering the Internal Revenue Code.

SEC

The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

Limited Liability Company

A business structure in the United States that provides its owners with limited liability while allowing them to enjoy the tax and operational flexibility of a partnership.