Which of the Following Statements Regarding Performance Incentives Is True

question 43

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 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:

Global Marketplace

The global marketplace encompasses the worldwide economic environment where goods, services, currencies, and information are bought and sold across national borders.

Global Channel

Distribution networks that connect producers and consumers across international borders, facilitating the global trade of goods and services.

Distribution

The process of making a product or service available for the consumer or business user that needs it, through direct or indirect means.

Product Strategies

The planning and execution of decisions related to a company's product mix, development, branding, and positioning to meet customer needs and achieve competitive advantage.