Which of the Following Is Most Likely to Be a Disadvantage

question 4

Multiple Choice

Which of the following is most likely to be a disadvantage of skill-based pay plans?

• A)They are generally not favored by employees as it is difficult to see the connection between the plan, the work, and the size of the paycheck.
• B)They discourage adaptability of employees to changing production needs.
• C)They are expensive in the long run as the majority of employees become certified at the highest pay levels.
• D)They dampen employee versatility.

---

Definitions:

Privity of Contract

The principle that a contract directly affects and grants enforceable rights only to the parties involved in the contract agreement.

Promissory Estoppel

A legal principle that prevents a party from going back on a promise, even if it was made without formal consideration, when someone else has reasonably relied on that promise.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.

Statutory Novation

The replacement of an obligation to perform under a contract with a new obligation or party, as recognized by statute.