Which of the Following Is a Drawback of Pay Rates

question 7

Multiple Choice

Which of the following is a drawback of pay rates?

• A) It increases the administrative burden of managing the compensation system.
• B) It results in decreased promotional opportunities for employees.
• C) It results in some jobs being underpaid and others being overpaid.
• D) It increases the costs of surveying the market.
• E) It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market.

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Definitions:

Shares Outstanding

The total number of a company's shares that are currently owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Days Sales Outstanding

A calculation used by a company to estimate the average number of days it takes to collect payments after a sale has been made.

Receivables

Funds that are owed to a company by its customers as a result of the sale of goods or services on credit.

Sales

The total amount of goods or services sold by a business, contributing to its revenue.