Which of the Following Statements Is True Regarding a Merit-Based

question 84

Multiple Choice

Which of the following statements is true regarding a merit-based pay plan?

• A)It bases pay levels on how many skills employees have or how many jobs they can do.
• B)It is also called competency-based pay plan.
• C)Unions typically resist merit-based pay plan.
• D)It distributes compensation based on an established formula designed around a company's profitability.
• E)A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.

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