Which of the Following Is Not a Sound Guideline for Designing

question 94

Multiple Choice

Which of the following is not a sound guideline for designing a reward and incentive system that helps promote good strategy execution?

• A)The reward system must be administered with scrupulous objectivity and fairness
• B)The payoff for meeting or beating performance targets must be a major,not minor,piece of the total compensation package
• C)Any incentive plan should extend to all managers and all employees,not just top management
• D)Ways must be found to reward deserving nonperformers who,for some reason,do not fare well under the incentive system
• E)Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect

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Definitions:

Other Revenues and Gains

Income generated from activities not directly related to the primary operations of a business.

Multiple-Step Income Statement

A multiple-step income statement is a more detailed financial statement that separates operating revenues and expenses from non-operating ones, providing insights into the different aspects of a company's performance.

Income From Operations

Also known as operating income, it reflects the revenue from a company's principal business activities minus its direct operating expenses (excluding non-operating income and expenses).

Other Revenues and Gains

Income from activities not related to a company's primary business operations.