Before Implementing a Compensation Strategy,human Resources Professionals Must Ensure the Appropriate

question 17

Multiple Choice

Before implementing a compensation strategy,human resources professionals must ensure the appropriate screens are in place to evaluate the strategy's appropriateness.Which screen is NOT considered one of the so-called "must pass screens"?

• A) Costs are within the financial means of the organization.
• B) The new compensation strategy meets the minimum standards under employment standards legislation.
• C) The new compensation strategy attracts potential employees with the required skill sets.
• D) Current employees will be happy with the new compensation strategy.

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Definitions:

Retained Earnings

The cumulative amount of net income earned by a company that is retained and not distributed to shareholders as dividends.

Cumulative Preferred Stock

Cumulative Preferred Stock is a type of stock that entitles its holders to receive dividends in arrears before any dividends can be paid on common stock.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in the period they were due.

Current Liability

A company's debt or obligations that are due within one year and are listed on a company's balance sheet.