What Is the Difference Between Compensatory and Noncompensatory Variables in the Country

What is the difference between compensatory and noncompensatory variables in the country attractiveness scorecard?

A) Compensatory variables are factors associated with profitability and returns that compensate the company for assuming risk, while noncompensatory variables are associated with risk and are either acceptable or unacceptable.
B) Good values of one variable can be traded off against bad values of other variables if they are compensatory, but noncompensatory variables are either acceptable or unacceptable.
C) Compensatory variables are factors associated with profitability and returns that compensate the company for assuming risk, while noncompensatory variables are associated with risk and do not contribute to compensation.
D) Compensatory variables are factors associated with risk for which the company requires compensation before it will be willing to accept them, while noncompensatory variables are return factors that do not require extra compensation.
E) None of the statements above is correct.