Which of the Following Is True of Pay Ranges

question 5

Multiple Choice

Which of the following is true of pay ranges?

• A) Pay ranges are most common for blue-collar jobs and those covered by union contracts.
• B) Pay ranges are often widest for employees who are at lower levels in terms of their job evaluation points.
• C) Pay ranges generally are designed so that they do not overlap.
• D) The market rate or the pay policy line generally serves as the midpoint of a range for the job.
• E) The less overlap, the more flexibility in transferring employees among jobs.

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Definitions:

Cash Dividends

Cash distributions given by a company to its stockholders out of its earnings.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Par Value

Par value, also known as nominal value, is the legally documented worth of a security's share, such as stocks or bonds, at the time of its issuance.

Stockholders

Individuals or entities that own shares in a corporation, providing them ownership interest.