Which of the Following Statements Is(are)true Regarding Compensation

question 74

Multiple Choice

Which of the following statements is(are) true regarding compensation?
(A) Fixed compensation is generally not linked to measured performance;i.e. ,it is independent of measured performance.
(B) Properly designed management control systems have contingent compensation items but not fixed compensation items.

• A) Only A is true.
• B) Only B is true.
• C) Both A and B are true.
• D) Neither A nor B is true.

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Definitions:

Minimum Reservation Point

is the lowest or least favorable outcome one is willing to accept in a negotiation or deal.

Maximum Reservation Point

The highest price a consumer is willing to pay for a good or service, beyond which they will choose not to purchase it.

Reservation Point

The least favorable point at which one will accept a deal during negotiations, beyond which they will walk away.

Bargaining Zone

A range within which an agreement is satisfactory to both parties involved in a negotiation process.