The _____ Plan Motivates Employees to Propose and Implement Cost-Cutting

question 28

Multiple Choice

The _____ plan motivates employees to propose and implement cost-cutting strategies because a percentage of the cost savings achieved during the specified time is distributed to the employees.

• A)commission
• B)equity
• C)piece-rate
• D)stock option
• E)Scanlon

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Definitions:

Total Utility

The total satisfaction or pleasure a person derives from consuming a specific quantity of goods or services.

Risk-Averse

Describes individuals who choose to reduce risk when that reduction leaves the expected value of their income or wealth unchanged.

Income Curve

The income curve, in economics, typically relates to a graphical representation showing how a change in income affects consumption or purchasing patterns of individuals or households.

Expected Value

A statistical concept that calculates the average result of a random event when the process is repeated many times.