Which of the Following Statements Holds True for Pay for Performance

question 71

Multiple Choice

Which of the following statements holds true for pay for performance?

• A)It refers to the right to buy a piece of the business that may be given to an employee to reward excellent service.
• B)It refers to a form of pay in which an organization shares the financial gains with employees, who receive a portion of the profit achieved from their efforts.
• C)It refers to a form of variable pay where the employee earns additional compensation on the basis of achieved objectives.
• D)It refers to a form of pay that is tied directly to an individual's performance in meeting specific business goals or objectives.
• E)It refers to the cash wage paid at the end of every month in lieu of the service rendered to the company.

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Definitions:

Cash Flow To Shareholders

Dividends paid out by a firm less net new equity raised.

Capital Gains

The profit that results from a sale of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.

Eligible Dividends

Dividends that are qualified for preferential tax treatment under certain tax laws.