Companies Need to Design Compensation Systems That _________________

question 84

Multiple Choice

Companies need to design compensation systems that _________________.

• A) punish poor performance
• B) reinforce the behaviors needed to meet the company's objectives
• C) are easy to administer
• D) do not differ significantly from those of other firms in the industry
• E) are innovative

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Definitions:

Defined Benefit Plans

Pension plans in which retirement benefits are set according to a fixed formula.

Endowment Funds

Organizations chartered to invest money for usually tax-exempt institutions.

Charitable Organizations

Nonprofit entities that operate for the purpose of providing aid and support to societal, cultural, educational, or environmental causes.

Educational Institutions

Organizations dedicated to the instruction and training of students in various fields of study.