Both Fluctuating Exchange Rates and Deferred Payment Terms Are Necessary

question 156

True/False

Both fluctuating exchange rates and deferred payment terms are necessary for foreign exchange risk to exist.

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Definitions:

External Inequity

A condition where employees perceive that their compensation is not fair compared to what people in similar positions in other organizations are earning.

Incentives

Motivators, often financial in nature, designed to encourage employees to achieve greater levels of performance or reach specific objectives.

Overpaying

The act of compensating an employee or vendor more than the market rate or value for their services, work, or product.

Job Evaluation

Is a method for determining the relative value or worth of a job to the organization so that individuals who perform that job can be compensated adequately and appropriately.