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C1 Exam Dumps : Regulatory Environments for Compensation Programs

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Regulatory Environments for Compensation Programs Questions and Answers

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Question 1

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

Options:

A.

It remains the same.

B.

It decreases because variable costs are increasing.

C.

It increases at the same rate as variable costs.

D.

It becomes increasingly higher as revenues increase.

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Question 2

Why are lump-sum increases generally used?

Options:

A.

To control annual fixed costs from base pay adjustments

B.

To elevate employees who are below the midpoint in the range

C.

To reward employees under short-term incentive plans

D.

To make up for benefits not provided by the organization   

Question 3

What type of equity incentive gives employees the right to purchase company shares at a specified price?

Options:

A.

Stock/share options

B.

Stock/share grants

C.

Restricted stock/shares

D.

Performance units   

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