Pay Practices Must Be Designed Not Only to Attract and Retain

question 55

Multiple Choice

Pay practices must be designed not only to attract and retain employees but also to ensure that _____ do not become excessive in relation to those of competing employers.

• A) employee stock ownership plans
• B) labor costs
• C) merit-pay increases
• D) flexible benefit packages

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Definitions:

Anticipated Growth Rate

The expected rate at which a company, asset, or economy is predicted to grow over a certain period of time.

Free Cash Flow

The amount of cash generated by a company after accounting for operating expenses and capital expenditures.

Market Capitalization Rate

The market-consensus estimate of the appropriate discount rate for a firm’s cash flows.

Corporate Tax Rate

The tax imposed on the net income of a corporation, varying by country and sometimes within jurisdictions of countries.