Which of the following is true about the level of risk involved with incentive pay?
A) It decreases as incentive pay represents a greater proportion of total core compensation.
B) It is lower for higher-level employees than for lower-level employees.
C) It depends on the extent to which employees control the attainment of a desired goal.
D) It is dependent on subjective performance appraisals.
Question 2
In general, which of the following is an incentive plan design consideration?
A) profitability
B) the outcome of an employee election about willingness to participate in one or more incentive plans
C) the level of risk employees will accept in their overall compensation package
D) workforce unionization
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