Which of the Following Forms of Payment Is Not an Incentive

question 117

Multiple Choice

Which of the following forms of payment is not an incentive plan?

• A)commission plans for salesmen.
• B)flat salary for a plant manager.
• C)bonuses for managers that increase as profits increase.
• D)none of the statements associated with this question are correct.

---

Definitions:

Popular Belief

A widely held opinion or conviction among a large group of people, regardless of whether it is based on fact or myth.

Slippery Slope Fallacy

A logical fallacy in which a relatively small first step leads to a chain of related events culminating in some significant effect, much like sliding down a slippery slope.

Gambler's Fallacy

A logical fallacy in which one assumes that future probabilities are altered by past events, often seen in gambling when assuming a certain outcome is "due".

Sunk Cost Fallacy

The misconception of valuing a project or investment based on the amount of resources already invested, rather than the prospective future returns.