A Company Designs Its Compensation System Around the Philosophy That

question 69

Multiple Choice

A company designs its compensation system around the philosophy that employees exchange their skills and contributions for pay.As a consequence,employees feel fairly compensated when the ratio of their inputs and outputs is equivalent to those of other employees whose job demands are similar to their own.This company's compensation system is based on a ________ compensation model.

• A) balanced equity
• B) labor market
• C) free market
• D) distributive justice

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Definitions:

Corporations' Rights

Legal rights afforded to corporations, such as the right to enter into contracts, sue and be sued, own assets, and pay taxes.

Director Requirements

Criteria and qualifications that individuals must meet to serve on a company's board of directors, as determined by corporate bylaws or regulations.

Own Stock

Refers to the shares a company holds in its own treasury, often bought back from investors.

Corporation

A legal entity recognized by law as separate from its owners, providing them with limited liability and the ability to raise capital through the sale of shares.