An Incentive Plan Where a Portion of the Bottom-Line Economic

question 15

Multiple Choice

An incentive plan where a portion of the bottom-line economic company profits is given to employees is called __________. An incentive plan that combines a measurement of productivity with a financial bonus related to any increases in organizational productivity is called __________.

• A) job-based pay; skill-based pay
• B) competency-based pay; productivity-based pay
• C) profit sharing; gain sharing
• D) bonus sharing; incentive pay

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Definitions:

Lessor

The owner of a property or asset that is leased or rented out to another party, known as the lessee.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, outlining assets, liabilities, and shareholders' equity.

Current Asset

An asset that can reasonably be expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Fixed Asset

A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income, and is not expected to be consumed or converted into cash within a year.