Which of the Following Statements Regarding Performance Incentives Is True

question 7

Multiple Choice

Which of the following statements regarding performance incentives is true?

• A)Employees tend to hold onto stock options rather than sell them.
• B)Merit pay is always a successful program because employees recognize they will be rewarded only if performance increases.
• C)Profit sharing is very effective in tying individual pay to employee effort.
• D)Companies are increasingly choosing to implement team- or group-based pay-for-performance programs over individual-based pay-for-performance programs.

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Definitions:

Industrial Accidents

Unplanned incidents that occur in the course of work, leading to physical harm or damage.

Lost Workdays

Days of work missed by employees due to illness, injury, or other reasons, impacting productivity.

Relatively Low Stress

A condition of experiencing lesser degrees of stress or tension compared to a higher baseline or expectation.

Unwanted Pregnancy

A pregnancy that occurs without the intention or desire of one or both participating individuals.