Which of the Following Arguments Opposes the Idea of High

question 39

Multiple Choice

Which of the following arguments opposes the idea of high executive pay?

• A) High salaries provide an incentive for innovation and risk taking.
• B) Not many individuals are capable of running today's large, complex organizations.
• C) Top athletes and entertainers make a lot of money, so top executives should, too.
• D) High salaries divert resources that could be used to invest in the business.

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Definitions:

Organization-Level

Pertains to processes, characteristics, or outcomes that are collective in nature and pertain to the entirety of an organization.

Merit Pay

A compensation strategy that rewards employees based on their performance and achievements, rather than their tenure or position.

Profit Sharing

A company's practice of distributing a portion of its profits to its employees, often as a part of their compensation package.

Piece Rate Plan

A compensation system where employees are paid based on the quantity of work they produce or tasks they complete.