Which of the Following Are Key Characteristic(s)of Divisional Incentive Compensation

question 3

Multiple Choice

Which of the following are key characteristic(s) of divisional incentive compensation plans?

• A)cash bonuses and profit sharing for short-term performance.
• B)deferred compensation for long-term incentive.
• C)special awards for particular actions or extraordinary performance.
• D)All of the answers are correct.

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Definitions:

Barriers to Entry

Restrictions or obstacles that prevent new competitors from easily entering an industry or area of business.

Unlimited Market Power

A hypothetical situation where a company or entity can set the market price for its product without any competitive constraint.

Monopolists

Entities that hold exclusive control over the production and sale of a particular good or service, eliminating competition in the marketplace.

Barriers to Entry

Barriers consisting of financial, bureaucratic, or legal hindrances that restrict the entry of new players into a market or business sector.