Which of the Following Statements About Developing Reward System Is

question 20

Multiple Choice

Which of the following statements about developing reward system is incorrect?

• A) The key benefit of a profit sharing plan is to encourage employees to think like owners
• B) The key benefit of gain sharing plan is to introduce equity,ensuring the employees who contribute to the business can get a share of the gains
• C) The key benefit of an employee share plan is to reduce free-riding problems.
• D) The key benefit of an individual-based incentive system is to highlight improve expectancy and instrumentality

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Definitions:

Holder in Due Course

A legal term referring to a party that has acquired a negotiable instrument in good faith and for value, thereby having certain rights to enforce the instrument free of many defenses.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and which can be transferred to another holder.

Natural Persons

Individuals in their capacity as humans in law, as opposed to legal entities like corporations.

Holder in Due Course

A term referring to a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original party.