If you worked in a cyclical industry such autos,which set of pay components would be least desirable?
A) gain sharing and lump-sum bonus
B) merit pay and base wage
C) profit sharing and lump-sum bonus
D) cost of living and base wage

Question

Quizplus · Accepted Answer

Profit sharing and lump-sum bonus would be least desirable in a cyclical industry such as autos because profits and revenue can fluctuate greatly based on the state of the economy, consumer demand, and competition. In years of low profits, employees may not receive any profit sharing payments, leaving them with lower total compensation. Lump-sum bonuses may also be impacted by the ups and downs of the industry, making it difficult for employees to rely on them as a consistent part of their compensation package. Options A, B, and D offer more stable and predictable forms of compensation.

If You Worked in a Cyclical Industry Such Autos,which Set