In Order for the Open Pay System to Be Motivational

question 95

True/False

In order for the open pay system to be motivational, an employee's effort must be linked to long-term performance.

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Definitions:

NAV

Net Asset Value, the per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Front-end Load

A commission or sales charge applied at the time of the initial purchase of an investment, usually used in mutual funds.

Back-end Load

A fee paid by an investor when shares are sold, typically used in mutual funds, where the fee decreases over time the investment is held.

Annual Fees

Refers to the yearly charges associated with having an account, typically found in credit cards or investment accounts, to cover account management services.