Which of the Following Statements About Commission Systems of Compensation

question 117

Multiple Choice

Which of the following statements about commission systems of compensation is false?

• A)They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort.
• B)During sluggish periods, an employer's payroll expenses will decline along with sales.
• C)If workers are paid on the basis of the number of units produced, they may become less concerned about quality.
• D)The lack of income stability will induce the more productive workers to leave in search of more secure employment.

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Definitions:

Thurstone's Multifactor Approach

A theory on intelligence by L.L. Thurstone that suggests intelligence consists of several distinct abilities rather than a single factor.

Multifactor

Relating to or involving several factors or causes.

Verbal Meaning

The interpretation or explanation of words and their use.

Flexible Battery Approach

A method in psychological assessment where a variety of tests are selected and used based on the specific needs and characteristics of the individual being evaluated.