If a Corporation Compares Its Compensation and Performance-Evaluation Systems to Its

question 32

Multiple Choice

If a corporation compares its compensation and performance-evaluation systems to its competitors,it has engaged in:

• A)plagiarism.
• B)patent infringement.
• C)benchmarking.
• D)specific knowledge enhancement.

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Definitions:

Marginal Benefit

The additional benefit received from consuming one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a good or service, which can vary depending on the level of production.

Rational Decision Maker

A theoretical entity in economics and decision theory that systematically and logically evaluates options before making a choice.

Rational Choice

The theory that individuals make decisions based on the maximization of their benefits and the minimization of their costs.