Companies using performance-based compensation systems tend to be:
A) publicly-held corporations in competitive markets.
B) smaller, rapidly growing companies that face strong competitive pressures.
C) larger firms with several layers of management that operate in relatively stable markets.
D) large firms that desire to break out of the "pack" and distinguish themselves from competitors.

Question

Quizplus · Accepted Answer

Smaller, rapidly growing companies facing strong competitive pressures often use performance-based compensation to incentivize employees to meet growth and competitive goals.

Companies Using Performance-Based Compensation Systems Tend to Be