The Degree to Which Pay Influences Individual and Aggregate Motivation

question 89

Multiple Choice

The degree to which pay influences individual and aggregate motivation among the employees at any point in time is referred to as:

• A) sorting effect.
• B) incentive effect.
• C) motivational effect.
• D) directional effect.

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Definitions:

Unrealized Intercompany Profits

Profits arising from transactions between entities within the same group that have not yet been realized by selling the goods or services to an external party.

Cumulative Dividends

Dividends on preferred shares that accumulate and must be paid out before any dividends can be distributed to common shareholders.

Consolidated Cost

The total cost that combines figures from various subsidiaries of a parent company into one aggregated total.

Unrealized Inventory Profits

Profits that result from internal sales within a company or conglomerate but have not been realized through sales to external parties.