One Common Feature of All Types of Incentive Plans Is

question 42

Multiple Choice

One common feature of all types of incentive plans is:

• A)an established standard of performance that is used to determine the magnitude of the incentive pay.
• B)a sharing contract between the employees and employers, which stipulates that the losses incurred by the companies will be shared by both employees and employers.
• C)the established formula that specifies the maximum percentage of base pay allocated as incentives.
• D)a risk-sharing plan that increases pay depending upon the turnover rate of a company.

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Definitions:

Leaders

Individuals who guide, direct, or influence people, setting a direction for the group and motivating others towards achieving goals.

External Environment

Factors, forces, situations, and events outside the organization that affect its performance and strategies.

Top Executives

Senior-level managers or leaders in an organization responsible for making overarching decisions and setting strategic directions.

Threats

External or internal factors that pose a potential danger or negative impact on an individual or organization.