According to Research,which of the Following Best Describes Incentive Plans

question 56

Multiple Choice

According to research,which of the following best describes incentive plans?

• A)They can contribute to organizational performance if certain conditions are met.
• B)They usually improve organizational performance by at least 10 percent.
• C)They usually lead to negative outcomes such as confusion and competition.
• D)They tend to drive up organizational costs and decrease profits because more pay has to be given to employees.

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Definitions:

Large Firms

are corporations or enterprises that operate on a large scale, typically having extensive operations, numerous employees, and a wide reach of influence and market control.

Concentration Ratio

A measure of the market share held by the largest firms within an industry, used to determine the level of competition and market structure.

Price Wars

A competitive exchange among rival companies where prices are successively lowered to undercut competitors, often leading to reduced profit margins.

ATC Curve

Average Total Cost Curve, a graphic representation that shows the cost per unit of output produced.