Internal Equity Pay Comparison

question 97

Multiple Choice

Internal equity pay comparison:

• A)is influenced by the organization's choice of pay level.
• B)is the primary administrative tool organizations use in choosing a pay level.
• C)focuses on what employees within the same organization, but in different jobs, are paid.
• D)is determined using market pay surveys.
• E)is likely to influence the decisions of applicants to accept job offers.

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Definitions:

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer's total income.

Interest Income

Earnings received from deposit accounts or investments through the payment of interest.

Eligible Dividends

Dividends that are designated by a corporation to be eligible for a lower tax rate for the receiver, depending on jurisdiction.

Average Tax Rate

The percentage of total income that goes to taxes, calculated by dividing the total amount of tax paid by the total income.