What Does a Compa-Ratio of Greater Than 1 Mean

question 15

Multiple Choice

What does a compa-ratio of greater than 1 mean?

• A) Employees,on average,are being paid above the midpoint in the pay range.
• B) The majority of employees are in the first pay quartile.
• C) The firm is paying their employees in the bottom half of the pay range.
• D) The firm has only a minority of their employees in the top pay bracket.

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Definitions:

Factors

Factors are elements or conditions that are influential in determining outcomes.

Target Markets

Specific groups of potential consumers at whom a company aims its products or services, identified by demographic, geographic, and psychographic characteristics, or by purchasing behavior.

Compensating Balances

Minimum balance requirements mandated by banks for borrowers, serving as a form of security for the loan.

Effective Cost

Effective Cost is the total cost of a product or service once all relevant factors, including hidden costs and indirect expenses, are considered.