Variable Pay Quizzes – Questions With Well Detailed
Solutions (Graded A+)
Which of the following describes a purpose of variable pay? Right Ans - To
differentiate the pay individuals who achieve results from those who do not
What business strategy often includes a combination of price, quality,
dependability, and ease of purchase that competitors cannot match? Right
Ans - Operational Excellence
Which of the following business objectives would relate most to a
product/service leadership strategy? Right Ans - Time from innovation to
market
In which of the following stages of the business life cycle would an
organization generally be focused on maintaining/increasing market share,
improving productivity and reducing cost of sales? Right Ans - Mature
Which of the following business life objectives would relate most to the start
up stage of a business life cycle? Right Ans - Obtaining capital
What influences can variable pay provide in relation to organizational
performance? Right Ans - Focus, alignment, motivation and reinforcement
What are the three categories of variable pay? Right Ans - Incentives,
bonuses and recognition
Which of the following plans is a type of long-term incentive? Right Ans -
Equity-based plan
Which individual performance based plan would be most appropriate for an
account representative with a high degree of influence over company sales?
Right Ans - Commission plan
Which of the following is an example of an appreciation-only equity-based
plan? Right Ans - Stock options
Solutions (Graded A+)
Which of the following describes a purpose of variable pay? Right Ans - To
differentiate the pay individuals who achieve results from those who do not
What business strategy often includes a combination of price, quality,
dependability, and ease of purchase that competitors cannot match? Right
Ans - Operational Excellence
Which of the following business objectives would relate most to a
product/service leadership strategy? Right Ans - Time from innovation to
market
In which of the following stages of the business life cycle would an
organization generally be focused on maintaining/increasing market share,
improving productivity and reducing cost of sales? Right Ans - Mature
Which of the following business life objectives would relate most to the start
up stage of a business life cycle? Right Ans - Obtaining capital
What influences can variable pay provide in relation to organizational
performance? Right Ans - Focus, alignment, motivation and reinforcement
What are the three categories of variable pay? Right Ans - Incentives,
bonuses and recognition
Which of the following plans is a type of long-term incentive? Right Ans -
Equity-based plan
Which individual performance based plan would be most appropriate for an
account representative with a high degree of influence over company sales?
Right Ans - Commission plan
Which of the following is an example of an appreciation-only equity-based
plan? Right Ans - Stock options
