Which of These Performance-Based Rewards Tends to Create the Strongest

question 133

Multiple Choice

Which of these performance-based rewards tends to create the strongest psychological connection between the individual employee's work effort and the reward received?

• A)Profit sharing plan
• B)Gainsharing plan
• C)Employee stock ownership plan
• D)Employee stock option plan
• E)None of these rewards offer any psychological connection between the individual employee's work effort and the reward received.

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Definitions:

Principal

The original sum of money borrowed in a loan, or the initial amount of investment, excluding any interest or dividends.

Maturity Value

The amount that will be received at the maturity date of an investment, including the principal and any accrued interest.

Future Value

The value of an asset or cash at a specified date in the future calculated based on assumed rate of growth or interest.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.