According to the Textbook,what Is the Primary Reason for the Increased

question 33

Multiple Choice

According to the textbook,what is the primary reason for the increased usage of compensation consultants by organizations?

• A) Corporations are contracting out most human resource functions.
• B) Given greater standardization associated with compensation systems,it makes sense to use dedicated outside consultants.
• C) The level of complexity of compensation systems has increased.
• D) It is often cheaper to use to use consultants.

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Definitions:

Floor Price

The minimum price level set for a financial security, commodity, or good, below which it cannot be sold in the market.

Convertible Bonds

Convertible bonds are securities that can be turned into a specified amount of equity in the company that issued them, typically at the choice of the person holding the bond, during specific periods of their duration.

Straight-Debt Yield

The return an investor can expect to earn if they hold a bond to maturity without the issuer defaulting, typically not including the effects of callability.

Exchange Ratio

The ratio at which one company’s shares will be exchanged for another in the event of a merger or acquisition.