Components Identified as Vital to the Success of Both Scanlon

question 45

Multiple Choice

Components identified as vital to the success of both Scanlon and Rucker plans are:

• A)top management support and primary focus on wage incentives.
• B)a flexible pay out formula and low turnover rates.
• C)union and top management support.
• D)a productivity norm and effective worker committees.

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Definitions:

Reinvestment Risk

The risk that future proceeds from investments may have to be reinvested at a lower potential interest rate.

Coupon Rate

The interest rate that a bond issuer will pay to a bondholder, typically expressed as an annual percentage of the face value of the bond.

Interest Rates

The percentage of an amount of money charged for its use per period, commonly expressed as an annual percentage rate.

Bond Investing

The act of investing in bonds, which are debt securities, with the expectation of earning a return from interest payments and potential price appreciation.