A Compensation System That Pays Employees Such That "Some Skin

question 26

Multiple Choice

A compensation system that pays employees such that "some skin is in the game" means that

• A) a portion of employee pay is at risk
• B) employers risk high labor costs
• C) level of base pay is below competitors
• D) base pay is low while benefits are generous

---

Definitions:

Equity Finance

The method of raising capital through the sale of shares in a company, giving shareholders ownership interests.

Bonds

Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.

Loanable Funds

The money available for borrowing in the economy, which comes from savings and is used for investments and other purposes.

Supply Slopes

This term might be mistaken, but it likely refers to the representation of supply in economics, which traditionally slopes upward on a graph, indicating that as prices increase, suppliers are willing to provide more goods.