The Most Dependable Way to Keep People Focused on Strategy

question 29

Multiple Choice

The most dependable way to keep people focused on strategy execution and the achievement of performance targets is to

• A) establish ethical compensation policies and convince employees that they are the firm's most valuable competitive asset.
• B) design monetary and non-monetary incentives that boost labor productivity and help lower the firm's overall labor costs.
• C) generously reward and recognize people who meet or beat performance targets and to deny rewards and recognition to those who don't.
• D) pay employees a bonus for each strategic and financial objective that the company achieves.
• E) allow employees to propose what rewards they would like to receive to achieve the company's stretch objectives.

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Definitions:

Payments

The act of transferring money or money's worth from one party to another as a settlement for a transaction or an obligation.

Cash Receipts

Money received by a business, recorded in its financial statements, typically from transactions such as sales or services rendered.

Cash Sales

Transactions where payment is made in cash (or equivalent) at the time of sale, with no delay in payment.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.