What Is the Major DISADVANTAGE of a Straight Salary Plan

question 58

Multiple Choice

What is the major DISADVANTAGE of a straight salary plan?

• A)It is expensive to administer.
• B)It increases a retailer's variable costs.
• C)Many employees have trouble understanding a straight salary plan.
• D)It makes it very difficult for a retailer to assign employees to activities other than the one for which they were hired.
• E)It does not directly relate pay incentives to productivity.

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Definitions:

Navigable Waterways

Water bodies that are deep and wide enough for ships and boats to travel through, often playing a key role in transportation and trade.

Federal System

A form of government in which power is divided between a central authority and constituent political units.

Unitary

A system of government where a single central government holds the majority of the power, with any regional or local governments having authority that is delegated from the central government.

Confederal Systems

A form of government where power is given to individual states or entities, with a weak central authority, allowing for a loose union.