Which of the Following Statements Regarding Performance Incentives Is True

question 7

Multiple Choice

Which of the following statements regarding performance incentives is true?

• A)Employees tend to hold onto stock options rather than sell them.
• B)Merit pay is always a successful program because employees recognize they will be rewarded only if performance increases.
• C)Profit sharing is very effective in tying individual pay to employee effort.
• D)Companies are increasingly choosing to implement team- or group-based pay-for-performance programs over individual-based pay-for-performance programs.

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Definitions:

Purchase Price

The amount of money paid to acquire a product or service.

Consolidated Statements

Financial statements that aggregate the financial information of a parent company and its subsidiaries into one comprehensive financial report.

Accrued Interest

Interest that has been incurred but not yet paid.

Interest Dates

The specific dates on which interest payments are made or interest rates are applied to financial instruments or loans.