What Type of Incentive Compensation Is Utilized to Motivate Employees

question 65

Multiple Choice

What type of incentive compensation is utilized to motivate employees to achieve financial targets that increase the company's stock price?

• A) Profit-sharing plans
• B) Awards
• C) Cash bonuses
• D) Stock option programs

---

Definitions:

Inelastic Demand

A market situation where the demand for a product does not change significantly with a change in price.

Pareto Efficient

A condition of resource allocation in which making one person better off necessitates making another person worse off.

Net Benefit

The total benefits of a decision or action, subtracting any associated costs, reflecting the overall value or payoff.

Equitable Distribution

The fair and just allocation or distribution of resources among members of a society.