Gainsharing Plans Tend To

question 124

Multiple Choice

Gainsharing plans tend to:

• A)increase efficiency without paying employees any financial reward.
• B)distribute a portion of company profits to employees in the form of company stock.
• C)create a reasonably strong effort-to-performance expectancy.
• D)reward individuals for their own personal performance rather than team or organizational performance.
• E)increase efficiency without paying employees any financial reward creating a reasonably strong effort-to-performance expectancy.

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Definitions:

MIRR

The Modified Internal Rate of Return, which adjusts the IRR for the cost of capital and provides a better indication of a project's efficiency and profitability.

IRR

Internal Rate of Return; a metric in finance that helps in calculating the expected profitability of prospective investments.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Project

A project is a temporary endeavor designed to produce a unique product, service, or result, typically with defined goals and constraints.