Which Incentive Plan Is Based on a Philosophy That Managers

question 7

Multiple Choice

Which incentive plan is based on a philosophy that managers and employees must cooperate together?

• A)cash plan
• B)Scanlon plan
• C)deferred profit-sharing plan
• D)employee stock ownership plan

Understand the importance and characteristics of a healthy sense of skepticism.

Identify and evaluate the qualities that contribute to a person being considered a trusted expert.

Distinguish between different types of claims (e.g., self-contradictory, tautological) and understand their validity.

Recognize the significance of evidence and reasons in supporting claims.

---

Definitions:

Downsloping

describes a trend or curve that goes downward, often used in economics to describe demand curves where price decreases lead to an increase in quantity demanded.

Economic Profits

Profits exceeding the opportunity costs of a venture or investment, accounting for both explicit and implicit costs.

Normal Profits

The level of profit necessary to keep a firm in an industry, equating to the opportunity cost of capital and entrepreneurship.

Marginal Cost

The financial commitment needed for producing an extra unit of a good or service.