Which of the Following Is the Least Effective Practice When

question 55

Multiple Choice

Which of the following is the least effective practice when rewarding employees' good performance within an organization?

• A) Sharing rewards of doing business with employees
• B) Rewarding employees through the base wage or salary structure
• C) Having employees think of themselves as business partners
• D) Sharing the financial risks of doing business with employees

---

Definitions:

Dividend Policy

Dividend policy is a company's strategy or guidelines designed to decide the amount to be paid out to shareholders in the form of dividends.

Dividend Payment

The distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.

Declaration Date

The date on which a firm’s directors issue a statement declaring a dividend.

Ex-Dividend Date

The date when the right to the dividend leaves the stock. This date was established by stockbrokers to avoid confusion and is two business days prior to the holder-of-record date. If the stock sale is made prior to the ex-dividend date, the dividend is paid to the buyer. If the stock is bought on or after the ex-dividend date, the dividend is paid to the seller.