Bernard Is Upset When He Learns That the Company Is

question 53

Multiple Choice

Bernard is upset when he learns that the company is changing to a pay-for-performance system where lump-sum bonuses instead of raises will be used. The system will record the performance of each work team and reward everyone on the team equally. Which of the following is a reason for Bernard changing his mind about the system?

• A)Bernard's base pay will be essentially frozen.
• B)The pay-for-performance plan is phrased in vague, technical terms.
• C)Bernard is the highest individual performer on his team.
• D)Bernard is a low to average performer on his work team.

---

Definitions:

Investment Spending

Expenditures made by businesses or individuals on capital goods, which are intended to create future benefits such as increased production or revenue.

Interest Rate

The segment of a loan accruing interest costs to the borrower, commonly presented as a yearly percentage of the ongoing loan total.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal.

Loanable Funds

Funds available for borrowing, which consist of household savings and international capital flows.