The Chief Disadvantage of Group Plans Is That

question 41

Multiple Choice

The chief disadvantage of group plans is that

• A) each worker's rewards are no longer based just on his/her own efforts.
• B) a group incentive is problematic when conflict arises between group members.
• C) a group incentive may not improve importance.
• D) some members let others take on the burden of work.
• E) the group is as strong as its weakest worker.

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Definitions:

Operating Income

A measure of a company's profit generated from its core business operations, excluding deductions of interest and tax.

Operating Leverage

An indicator of the extent to which increases in sales revenue result in an increase in operating profit, showing the level of fixed expenses within a business's cost composition.

Sales Impact

The effect of marketing and sales activities on the volume or value of product sales.

Margin of Safety

The difference between actual sales and break-even sales, indicating the extent to which sales can drop before losses occur.