While Setting Pay Levels Initially, an Organization Has to Balance

question 55

Multiple Choice

While setting pay levels initially, an organization has to balance internal equity and external equity. Here external equity indicates ________.

• A) the amount of growth opportunities the job provides to the employee
• B) the worth of the job to the employee
• C) the worth of the job to the organization
• D) competitiveness of an organization's pay relative to pay elsewhere in its industry
• E) the amount of job satisfaction the job provides to the employee

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Definitions:

Buildings

Physical structures owned by a business, typically used for offices, manufacturing, or storage.

Equipment

Tangible property used in the operation of a business, not intended for sale, such as machinery, computers, and tools.

Natural Resources

Assets that are found in nature and are used for economic gain, such as oil, forests, minerals, or water.

Depletion Expense

An accounting approach for allocating the cost of extracting natural resources from the earth over the period of their extraction.