With Regard to Compensation,which of the Following Is True

question 28

Multiple Choice

With regard to compensation,which of the following is true?

• A)Companies change their compensation plans more frequently than they change their strategies.
• B)Compensation plans should be reviewed frequently to make sure that they are consistent with strategies.
• C)Most firms change their compensations plans at least once in two years.
• D)Firms should only change their compensation program when the salespeople are dissatisfied.
• E)All of these are true

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Definitions:

Gain Accounts

Accounts reflecting increases in equity, other than those relating to contributions from equity participants, typically from transactions and other events affecting the entity.

Debited

To be debited means an amount has been recorded on the left-hand side of a financial account, indicating an increase in assets or a decrease in liabilities.

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for specified losses.