A Company Designing a Compensation Plan Needs to Make Several

question 5

Essay

A company designing a compensation plan needs to make several decisions.Explain a company's pay options in terms of: fixed versus variable pay,performance versus membership,and individual versus job-based system.

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Definitions:

Insurance Payable

A liability account that represents amounts owed for insurance premiums that are due but not yet paid.

Proprietorship

A business owned by one individual.

Drawing

Drawing refers to the withdrawal of cash or other assets from a company by the owner(s) for personal use, decreasing the owner's equity in the business.

Decrease In Assets

A reduction in the value or amount of the assets owned by a company or individual.