Which of the Following Is a Disadvantage of a Pay

question 90

Multiple Choice

Which of the following is a disadvantage of a pay structure that rewards employees for winning promotions?

• A) It does not focus on setting pay for groups of jobs.
• B) It does not make adjustments to a pay rate to reflect differences in labor markets.
• C) It discourages employees from gaining valuable experience through lateral career moves.
• D) It rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills.
• E) It places the employer at an economic disadvantage relative to other employers that pay the market rate by raising the pay for some jobs.

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Definitions:

Rigid Standards

Strict, inflexible guidelines or criteria that must be followed rigorously.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial statements are prepared and presented globally.

Accounting Treatments

Methods or procedures applied in preparing and presenting financial statements, based on guidelines from accounting standards.

Credit Risk

The potential for loss due to a borrower's failure to make payments on any type of debt.