What Prevents a Firm from Offering a Delayed-Compensation Scheme to Its

question 24

Multiple Choice

What prevents a firm from offering a delayed-compensation scheme to its employees and then firing each worker when the worker's wage exceeds his or her value of marginal product?

• A)Firms that offer delayed-compensation schemes are legally barred from firing workers.
• B)Profits would increase by allowing the worker to continue on.
• C)The worker will have already retired by the time the worker's value of marginal product exceeds his or her wage.
• D)The firm would lose the trust of the workers, and new workers would not accept the payment scheme.
• E)Profits are insensitive to when the worker quits his job.

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Definitions:

External Environmental Leadership Action

Leadership actions or decisions that are influenced by or respond to external environmental factors, such as market trends, economic conditions, or regulatory changes.

Relational External Leadership Action

Leadership activities focused on building and managing relationships beyond the immediate organization to include external stakeholders and environments.

Principled Leadership

Leadership that is based on firmly held beliefs or ethics, guiding leaders to act consistently and with integrity.

Positive Influence

The effect or impact that encourages beneficial changes or development in others through positive actions, attitudes, or communication.