Resources,Inc

question 113

Multiple Choice

Resources,Inc.has recently increased its emphasis on pay-for-performance.Within the last several months,there has been a sharp increase in employee competition and the sabotaging of projects.The incentive plan has most likely:

• A) expanded the credibility gap.
• B) decreased personal motivation.
• C) discouraged employee cooperation.
• D) diminished managerial powers over subordinates.

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Definitions:

Interest Rate Sensitivity

A measure of how the price of a financial asset changes in response to changes in interest rates.

Double Digit Yields

Interest or dividend rates that are in the double digits percentage-wise, indicating high returns on investment but typically with higher risk.

Single Digit Returns

Single digit returns refer to the percentage gain or loss on an investment that is less than ten percent, indicating a low to moderate performance.

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its price.