Externalities Are Defined As

question 108

Multiple Choice

Externalities are defined as:

• A)any transaction external to the firm.
• B)costs or benefits that fall on third parties.
• C)policies that firms adopt to sell products outside the country.
• D)managers' dealings with stockholders outside the firm.
• E)costs of maintaining plant and equipment to avoid the scrutiny of external auditors.

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Definitions:

Job-Based Pay System

A compensation strategy where pay is based on the job itself, rather than the skills or performance of the individual holding the job.

Pay Increases

Adjustments made to employees' salaries to reflect changes in performance, inflation, or market rates.

Skill Acquisition

The process through which individuals learn new skills or enhance existing ones through practice and experience.

Point Rating Method

A systematic approach used in performance appraisals where various aspects of a job are rated using a numerical scale to evaluate employees' contributions and effectiveness.