Which of the Following Is a Factor That Determines the Size

question 30

Multiple Choice

Which of the following is a factor that determines the size and frequency of pay increases when using a merit increase grid?

• A)Time spent in the current pay grade
• B)Overall profitability of the company
• C)Employees' seniority
• D)Compa-ratio of employees
• E)The skills developed by the employee

---

Definitions:

Preferred Stock

A class of stock that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Annual Dividend

The total amount of money paid to shareholders from a company's profits over the course of a year per share of stock.

Floatation Costs

Expenses incurred by a company in issuing new securities, including underwriting fees and legal and administrative fees.

Cost of Retained Earnings

The rate of return that shareholders expect on the earnings that a company keeps and reinvests in its operations.