MerTon Inc

question 32

Multiple Choice

MerTon Inc.decides to reduce labor costs by using exit incentives to encourage some of its senior, high-earning members to leave the organization.It replaces the employees who quit with new employees and pays them low wages.Which of the following statements is most likely true in this scenario?

• A)The number of employees being paid red circle rates will increase.
• B)The salary range midpoint of the company is lesser than the compa-ratio.
• C)The salary range midpoint of the company is higher than the actual salary paid.
• D)The compa-ratio of the company is greater than one.

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Definitions:

Advantages

Positive or favorable factors or conditions that contribute to reaching a goal or achieving a desirable outcome.

Extreme Opening Offer

An initial negotiation position that is highly ambitious or far from what is ultimately desired, used as a strategy to shift the bargaining range.

Commitment

The state or quality of being dedicated to a cause, activity, or goal, often demonstrated through persistence and effort.

Screen a Position

The act of reviewing or evaluating a stance or viewpoint critically before further consideration.