Question :
71) Corey the president of a large corporation whose plants : 1346322
71) Corey is the president of a large corporation whose plants are very interdependent. Her corporation is vulnerable to cyclical ups and downs in product demand. Which of the following would be the best pay-for-performance plan for her corporation?
A) Scanlon plan
B) Rucker plan
C) ESOP program
D) Merit pay plan
72) Which of the following is the LEAST likely result of using long-term income incentives to reward CEOs?
A) Frequent CEO turnover
B) Soaring CEO pay increases
C) CEO options losing value when stock market falls
D) Unclear connection between CEO pay and firm performance
73) Approximately ________ of companies reward their executives with short-term year-end bonuses.
A) 25%
B) 40%
C) 75%
D) 90%
74) Which of the following is the LEAST likely reason for the distance between executive performance and long-term incentives?
A) Executives rarely know how much their equity in the firm is worth.
B) Executives are unlikely to have control over the value of the company’s stock.
C) Incentive plans are not always consistent with the firm’s long-term strategic objectives.
D) Golden parachutes fail to address what to pay executives when they are terminated from a firm.
75) In general, perquisites are:
A) part of team-based pay-for-performance plans.
B) offered to top-performing employees at all levels.
C) nonmonetary incentives awarded to executives.
D) are not well received by most executives.
76) ________ permit the executive to buy stock at, or below, cost during a limited time.
A) Formula-based stocks
B) Restricted stock plans
C) Stock appreciation rights
D) Stock purchase plans
77) Which term refers to a bonus given to executives that is proportional to the change in company stock prices, rather than changes in profitability measures?
A) Stock appreciation rights
B) Performance plan units
C) Performance share plans
D) Phantom stock
78) Most companies use a ________ when setting up their sales compensation plan.
A) straight commission plan
B) combination plan
C) straight salary plan
D) gainsharing plan
79) In what way are compensation programs for salespeople different from compensation programs for other types of employees?
A) Accurate market data on pay practices are easier to find for salespeople than for other types of employees.
B) The reward system for non-salespeople is more supervisory than it is for salespeople.
C) There is less performance variation between salespeople than between non-salespeople.
D) Perceptions of pay inequity are a lesser concern for salespeople than for non-salespeople.
80) Tanglewood Enterprises wants a sales compensation plan that is simple to administer, controls sales costs, and encourages salespeople to be entrepreneurial. Which of the following would be the best compensation plan for Tanglewood?
A) Straight commission plan
B) Combination plan
C) Straight salary plan
D) Merit plan
