Which of Following Statements Is True Regarding a Reward System

question 2

Multiple Choice

Which of following statements is true regarding a reward system that attempts to create good team players?

• A) The reward system should encourage competitive efforts.
• B) Rewards given to individuals should be based on peer evaluation.
• C) The reward system should ignore individual contributions.
• D) Performance-based rewards could include a bonus based on achievement of team goals.
• E) The reward system should discourage cooperative efforts.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings distributed to shareholders as dividends.

Market Price

The amount of money a buyer is willing to pay for a good or service in a competitive marketplace.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and assets.