Which of the Following Is True of External Equity Pay

question 49

Multiple Choice

Which of the following is true of external equity pay comparison?

• A)It involves comparisons with employees with lower-level jobs in the organization.
• B)It involves comparisons with employees with higher-level jobs in the organization.
• C)It influences whether employees accept transfers.
• D)It influences employees' willingness to accept promotions.
• E)It influences employees' decisions regarding whether to stay or move to another organization.

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Definitions:

Par Value

The face value of a stock or bond as specified by the issuing company, often used in accounting to record the equity or debt issued.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, often with dividends that are paid out before those of common shares.

Organization Expense

Organization expense refers to the costs associated with forming a business entity, such as legal fees, filing fees, and costs of issuing stock.

Paid in Capital in Excess

Financial capital received from investors above the par value of the shares issued, also known as additional paid-in capital.