Although Companies Utilize a Variety of Methods to Set Pay

question 83

Multiple Choice

Although companies utilize a variety of methods to set pay rates,other factors can challenge organizational plans and policies concerning wages and salaries,including all of the below except

• A)government regulations
• B)union strength
• C)the organization's level of productivity
• D)recruiting policies
• E)organization's wage and salary policies

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Definitions:

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage.