When Objective Performance Measures Are Unavailable but the Company Still

question 60

Multiple Choice

When objective performance measures are unavailable but the company still wants to base pay on performance, it uses a(n)

• A) gainsharing plan.
• B) profit-sharing plan.
• C) individual incentive plan.
• D) merit pay system.
• E) stock option plan.

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Definitions:

Product

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value.

Four Steps

A general process or procedure that involves four distinct stages or phases, often used in a variety of contexts such as problem-solving or project management.

Market Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Importance

The relevance or significance of something in a given context, often determining the priority or attention it receives.