Which of the Following Statements Is Supported by Evidence in the Textbook

question 4

Multiple Choice

Which of the following statements is supported by evidence in the textbook?

• A) Canadian firms spend 40 to 70 percent of their capital budgets on compensation.
• B) Properly designed compensation systems usually promote unproductive behaviour.
• C) Reward systems should be static and rarely reviewed.
• D) Canadian firms spend 40 to 70 percent of their operating budgets on compensation.

---

Definitions:

Goal Congruence

A condition in which the goals of the company's various employees and departments align with the overall objectives of the organization.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job or subject.

Suboptimal Decision

A choice made that is not the best or most effective among the alternatives considered.

Transfer Pricing

The setting of prices for transactions between affiliated companies within the same multinational group, which can impact where profits are reported.