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jekas [21]
3 years ago
12

In order to create an effective incentive compensation scheme, you must have:

Business
1 answer:
grigory [225]3 years ago
8 0

Answer:

The correct answer is option A.

Explanation:

Incentive compensation can be defined in the most basic way as the additional amount of money that employees get apart from their base salary on the basis of their performance.

Since incentives are allocated on the basis of performance of employees, it is necessary to have adequate performance measures, in order to create an effective compensation scheme.  

Performance measurements can be both internal as well as external.  

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Aggregate demand describes the total amount of all finished goods and services demanded in a country in a period. Aggregate is a reflection on the purchasing power of consumers in an economy.  A decrease in aggregate demand implies the economic power of consumers has decreased. A high inflation rate, low income, or high rate of unemployment can cause the aggregated demand to declines.

Expansionary fiscal policies are government actions of reducing taxes or increasing expenditure on stimulus programs. Reducing taxes increases the disposable income of consumers. It encourages firms to expand their businesses.  An increase in disposable means consumers will have more money to spend, which boosts aggregate demand. If the government spends money on stimulus programs such as the construction of roads and public buildings, it creates employment and income for more people.

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