An Important Prerequisite for an Effective Variable Pay Plan Is

question 49

Multiple Choice

An important prerequisite for an effective variable pay plan is referred to as "line of sight." What does this refer to with respect to the employee?

• A) Relate daily work to compensation for continual motivation.
• B) Relate daily work to the achievement of personal needs.
• C) Relate daily work to the achievement of overall corporate goals.
• D) Relate daily work to how overall society is impacted.
• E) Relate daily work to other employees efforts to ensure equity is achieved.

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Definitions:

Speculative Investment

An investment with a high degree of risk, where the investor anticipates significant returns in exchange for the risk of losing most or all of the invested amount.

GAAP Accounting

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting and accounting practices in the United States.

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.

Hedged Item

An asset, liability, or planned transaction exposed to price risks that are offset by using a hedging instrument.