Compa-Ratio Controls Compensation Costs and Maintains the Integrity of the Pay

question 62

Multiple Choice

Compa-ratio controls compensation costs and maintains the integrity of the pay structure through the use of

• A)merit pay.
• B)profit-sharing.
• C)gainsharing.
• D)skill-based.
• E)ownership.

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Definitions:

Profits

The financial surplus remaining after all expenses, including taxes and operating costs, have been deducted from total revenue.

Management Responsibilities

The duties and obligations that managers have to oversee and guide their organization effectively.

Personal Liability

The legal responsibility of an individual to satisfy debts or obligations from their personal assets.

Joint Stock Company

A partnership agreement in which company members hold transferable shares, whereas all the goods of the company are held in the names of the partners.