Which of the Following Statements About Pay Secrecy Is True

question 44

Multiple Choice

Which of the following statements about pay secrecy is true?

• A) The free open discussion of salaries and wages is the norm in U.S. business.
• B) Perceived inequities may arise due to poor implementation of a well-designed compensation plan.
• C) Pay secrecy makes life difficult for managers.
• D) Compensation professionals and managers are the only ones who should have responsibility for designing the compensation system.
• E) Managers typically abhor pay secrecy.

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Definitions:

Positive Relationships

Interactions characterized by trust, respect, and mutual appreciation, promoting a healthy and supportive environment.

Dominant Strategy

A strategy in a game theory scenario that is best for a player, no matter what strategies other players use.

Annual Profits

The net income a company generates in one fiscal year, derived from its revenue minus expenses, taxes, and costs.

Payoffs

The outcomes or returns from a particular action or decision, often used in the context of game theory and economic models.