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:

Royalty

A payment made to an individual or organization for the right to use a particular work, such as a song, book, or patent.

Franchising

A business model that allows individuals to buy and operate a branch of a larger company, using its branding, systems, and support.

Transit Hubs

Centralized areas where different modes of transportation come together, facilitating the transfer of passengers from one mode to another.

Royalty

Payments made to owners of intellectual property, such as patents, copyrights, or trademarks, for the right to use their work.